Shares dropped to 3.29$ after video.
UAL expected its consolidated passenger unit revenue to decline by 11 percent to 12 percent during the first quarter. It will also lose $80 million related to fuel hedge contracts.
UAL expects consolidated passenger unit revenue to decline by 11 percent to 12 percent during the first quarter of 2009. It also will take an $80 million cash loss related to fuel hedge contracts.
UAUA posted a Q4 loss of $1.3 billion. The company says that will cut 1,000 jobs by the end of 2009.
Crude oil prices dropped $1.58 on 12/24 to $37.40/barrel signaling improved profitability for airlines.
Facing losses from its oil hedges as oil prices decline, UAUA announced that it will sell $200 million in shares to raise cash.
United stock plummets over 20% when it announced plans to sell $200M in stock. Credit Suisse also lowered its price target from $17 to $13.
UAUA's stock soared 25% following its new agreement with credit processor Chase Bank over its cash reserve requirements.
Oil prices reached about $68 per barrel on October 31, less than half as much as its peak in July. As a result, UAL believes that it will be profitable in 2009.
Recent moves including an aircraft financing deal and asset sales led UAL Corp to announce that it will increase liquidity by nearly $275 million by 2008's end.
In a move to cut expenses amidst high oil prices, United announced plans to cuts its labor force by over 1100 people and reduce its plane fleet by 100.
This precipitous decline occurred immediately after Continental Airlines unexpectedly walked away from merger talks, effectively pricing the merger strategy out of the stock.
United Airlines reported its 4Q '07 earnings on January 22, 2008. The company announced a $53 million loss and cited increasing feul prices as a major cause.
Rumors surface on Jan 9 and are confirmed on Jan 15 of merger talks with Delta between both Northwest and United. Airline industry mergers historically drive up share prices because they consolidate markets, reduce competition, and help drive up ticket prices.
United Airlines announced strong third quarter results on October 25th. Their earnings exceeded analyst estimates, yet share prices fell following the news. The fall in share prices is reflective a current general trend in the airline industry. Rising fuel costs are a major source of concern for investors, as prices continue to set record highs.