United Airlines ( NASDAQ: UAL ) is currently changing hands at $37.74, down about 9% after reporting the highest Q2 revenue in the company's history and first profitable quarter since COVID-19 despite record-high fuel prices.
However EPS fell short of expectation and came in at $1.43 vs. $1.88 consensus.
Stock is scaling back as its CEO warned that the rest of the year is filled with risks that include high fuel prices and a potential recession and operational challenges posed threats to the industry over the next six to 18 months.
“We’re not going to get back to normal utilization and normal staffing levels until next summer,” CEO Scott Kirby said Wednesday on CNBC . “The system just can’t support our flying. We’re going to be a smaller airline because the system cannot support it.”
The company sees 2022 fuel bill of $9B higher vs. 2019 levels but CEO is still optimistic about near terms with strong demand and expect to be profitable for the year.
The company is also looking to hire 200 employees per month.
The company expects Q3 revenue to be up 11% and capacity to plunge 11% vs. 3Q19, Q4 capacity to be down 10% vs. 4Q19, 2022 capacity down 13% and recovery in 2023 with capacity up about 8%.
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United Airlines Holdings stock dips after CEO warns turbulent times ahead