United Airlines shares fell over 6% on weak quarterly results

6:18 PM January 21, 2021

United Airlines (UAL.US)  stock fell more than 6% after the company posted disappointing quarterly figures. United reported quarterly loss of $7 per share, while analysts' expected  loss of $6.60. Revenue  also came in below forecasts due to low demand during the coronavirus pandemic. The daily cash burn rate averaged $23 million vs. $21 million in Q3. The carrier is planning to reduce annual costs of $2 billion through 2023 as it tries to navigate a path to recovery. Company expects that demand will be low also into the first quarter, forecasting that operating revenue will fall as much as 70% as the uneven rollout of Covid-19 vaccines is expected to fuel a choppy recovery in air travel. "Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But the truth is that Covid-19 has changed United Airlines forever," said United Airlines CEO Scott Kirby in a statement.

United Airlines (UAL.US) stock launched today's session lower and broke below upward trendline which coincides with 50 SMA (green line). If sellers will manage to uphold momentum and break below the support at $ 41.44, declines could deepen. In such a scenario, support at $38.64 could be the first target for market bears. On the other hand, if buyers will manage to halt declines at the $41.44 level, then another upward impulse could be launched. Source: xStation5

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.