Travel restrictions due to the pandemic continue to weigh on United Airlines’ (UAL) financials. It reported an adjusted net loss of $2.6 billion in 2Q, as compared to adjusted net income of $1.1 billion in the prior-year period.
The company reported an adjusted loss of $9.31 per share compared to earnings of $4.21 per share in the prior-year period. Quarterly loss per share was higher than analysts’ estimates of $9.02.
Despite hefty 2Q loss, stock was up over 1% in after-hours as revenues beat analysts’ estimates. United Airlines’ quarterly revenues of $1.48 billion surpassed analysts’ estimates of $1.32 billion. Besides, cost-savings measures and optimism over the resumption of flights and a gradual uptick in traffic support its stock.
On June 29, Goldman Sachs analyst Catherine O’Brien raised the price target to $61 from $40. O’Brien, in a research note, said “passenger volumes have begun to lift off the bottom seen in April, and improving trends in markets that have reopened are encouraging.”