United Airlines stock falls after outlook cut for third-quarter capacity, passenger revenue
Shares of United Airlines Holdings Inc. UAL, +0.16% fell 1.4% in premarket trading Wednesday, after the air carrier lowered its outlook for third-quarter capacity and passenger revenue, and but said it has witnessed "a moderate improvement" in travel demand over the past couple weeks. United now expects third-quarter capacity to be down 70% from a year ago, compared with previous guidance for a 65% decline. Passenger revenue is now expected to be down 85%, versus previous guidance for an 83% decline. "The company does not currently expect the recovery from COVID-19 to follow a linear path. As such, the companys actual flown capacity may differ materially from its currently scheduled capacity," United said. The company affirmed its Q3 average daily cash burn rate of $25 million, and said it still expects total available liquidity to be over $18 billion at the end of the quarter. The stock has dropped 57.7% year to date through Tuesday, while the U.S. Global Jets ETF JETS, +0.38% has shed 42.0% and the S&P 500 SPX, +0.52% has gained 3.1%.