United Airlines Posts Big Q2 Loss but Sees Profits Ahead
United Airlines (NASDAQ: UAL) reported its second-quarter results on Tuesday afternoon. As expected, the company recorded a hefty loss for the quarter. However, like most other U.S. airlines, United outperformed its original forecast in the second quarter, as air travel demand began to rebound in earnest. Additionally, the full-service airline projected that it will generate positive adjusted pre-tax income in each of the next two quarters.
Back in April, United Airlines released its initial guidance for the second quarter. Its outlook implied quarterly revenue of approximately $5 billion, along with adjusted EBITDA of -$1 billion and an adjusted pre-tax loss of $2 billion.
In late May, United raised its guidance significantly, pointing to a sharp improvement in domestic leisure demand. Sure enough, Q2 revenue reached $5.47 billion, enabling the airline to limit its EBITDA loss to $585 million. For the month of June, adjusted EBITDA turned positive, reaching $212 million. United noted that a faster-than-expected recovery in business travel and long-haul international travel contributed to the strong sequential improvement.
Source Fool.com
