Feb 28 Shares of United Continental Holdings
fell more than 3 percent on Friday morning, after the
parent of United Airlines warned that its capacity and unit
revenues in the first quarter would come in below expectations
as winter storms disrupted operations.
"As a result of the severe weather, year-to-date, United has
canceled more than 22,500 flights, the largest number of which
(approximately 20,000) were regional flights. These
cancellations were nearly four times the cancellations during
the same period in 2013," the airlines carrier said in a
United expects first-quarter 2014 consolidated unit revenue
to decrease between 0.5- 2.5 percent year-over-year. "The
weather-related cancellations to date have reduced first quarter
2014 consolidated PRASM by approximately 1.5 percentage points,"
the airline said in the filing.
Earlier, the company had told Reuters that the storms and
sub-zero temperatures cost United $60 million in January alone.
Analyst Helane Becker said she now expected United to see
earnings per share of $3.85 a share for 2014, down from an
earlier expectation of $4.15 and compared to the consensus
estimate of $5.60.
Shares of the carrier were trading down 1.96 percent at
$45.60 Friday morning on the New York Stock Exchange.