The American airline United Airlines has disappointed the stock market with its profit forecast for the current quarter. United’s operations have been slowed by the suspension of flights to Tel Aviv following the Islamist Hamas attack on Israel and rising fuel prices.
After the quarterly report, investors temporarily dropped the shares by more than four percent in after-hours trading on Tuesday. If flights to Tel Aviv are suspended only until the end of October, United expects earnings per share of $1.80 for the current quarter. If it were to stop by the end of the year, it would cost just $1.50, as the airline predicted. Analysts on average expected a value of $2.10.
Flights to Tel Aviv from several U.S. cities account for about two percent of United’s capacity. In terms of revenue, United expects an increase of between 9 and 10.5 percent year-over-year for the current quarter.
In the third quarter, the airline’s business continued to be good as expected. United increased revenue by 12.5 percent to $14.48 billion. Profits rose by more than a fifth to almost $1.14 billion. (sda/dpa)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
