United Airlines Stock Is Falling: Here's Why

United Airlines Stock Is Falling: Here's Why

United Airlines Holdings Inc UAL shares are trading lower Thursday morning after the company reported worse-than-expected top-line results.

United reported second-quarter revenue of $12.11 billion, which missed the estimate of $12.17 billion, according to data from Benzinga Pro. The company reported quarterly earnings of $1.43 per share, which is up from a loss of $3.91 per share year-over-year.

Total operating revenue was up 6% compared to the same period in 2019. United said it expects third-quarter operating revenue to be up 11% compared to the third quarter of 2019.

Operating margins reached 7.2% in the quarter, marking United's first profitable quarter since before the pandemic. 

"Industry-wide operational challenges that limit the system's capacity, record fuel prices and the increasing possibility of a global recession are each real challenges that we are already addressing," said Scott Kirby, CEO of United.

"These fundamental challenges have already led to higher costs, higher fuel prices but, also higher revenue, which means we're as confident as ever we will deliver on our 9 percent adjusted pre-tax margin target in 2023," Kirby added.

See Also: Which US Big Tech Was Highest Lobbying Spender Against Antitrust In Q2 - Answer Is Not Shocking

UAL Price Action: United has a 52-week high of $54.52 and a 52-week low of $30.54.

The stock was down 7.39% at $38.60 at press time, according to data from Benzinga Pro.

Photo: Colin Brown from Flickr.

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