United Airlines puts profit target on downward revision
United Airlines has abandoned its profit target for 2020 due to the financial consequences of the spread of the new corona virus. For fear of the virus, the demand for airline tickets to Asia has fallen. For the time being, China is not being flown at all.
The company previously assumed earnings per share of 11 to 13 dollars. The company can no longer guarantee those amounts. If the outbreak is under control in mid-May and flights are resumed on schedule, the profit target is still within reach, says United. The airline normally flies to China twelve times a day.
The profit warning from United is clearly not isolated. Airline companies worldwide have stopped flights to and from China. Air France-KLM warned last week for an impact of up to 200 million euros in the first quarter.