United Airlines shares fell over 6% on weak quarterly results

4:18 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
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