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Transport

United Airlines warns of Q3 revenue hit from Delta variant

The US airline expects revenue to fall by 33% compared to the third quarter of pre-pandemic 2019, while capacity is forecast to decline by at least 28%

United Airlines Holdings Inc (NASDAQ:UAL) (NYSE:UAL.O) warned that its third-quarter revenue and capacity will be impacted by the slowdown in travel due to a rise in COVID-19 cases fuelled by the Delta variant.

United said it expects revenue to fall by a third compared to the same period in pre-pandemic 2019, while capacity is set to decline by at least 28%, which is more than the 26% fall forecast previously.

The airline expects to post an adjusted pre-tax loss in the third quarter while it had previously forecast adjusted pre-tax profits of US$82mln.

United said it could incur adjusted pre-tax losses in the fourth quarter as well, if the demand slowdown continues.

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