ALGT - United drags down airline stocks after weaker-than-anticipated forecast
Airlines stocks trade lower after United Airlines UAL disappoints with its Q1 results and guidance update. The airline expects capacity to be down 45% Y/Y in Q2 and revenue per available seat mile to be down 20% to mark sequential improvement. Positive comments by UAL on domestic bookings and positive EBITDA are being largely ignored due to the concerns over business demand and international travel. "While the comments were likely made to show where breakeven can occur during the recovery, investors may be interpreting them as an expectation that it will take longer than anticipated for business and international travel to recover fully," notes Cowen airline analyst Helane Becker.Notable decliners include Mesa Air ([[MESA]] -5.1%), American Airlines ([[AAL]] -4.9%), Hawaiian Holdings ([[HA]] -4.0%), SkyWest ([[SKYW]] -4.1%), JetBlue ([[JBLU]] -3.9%), Delta Air Lines ([[DAL]] -3.0%), Spirit Airlines ([[SAVE]] -3.9%) and Allegiant Travel ([[ALGT]] -3.3%). Dig further into the Q1 earnings report.
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United drags down airline stocks after weaker-than-anticipated forecast