United Airlines (UAL) - Get Report shares rose Tuesday after the world’s fourth-largest carrier reported a decrease in customer cancellations and an increase in demand for the remainder of the second quarter.
In April, the company’s gross bookings dropped more than 95% from a year ago, with customer cancellation rates reaching record highs, United said in a filing with the Securities and Exchange Commission.
But, “as of May 18, the company has seen a reduction in customer cancellation rates and a moderate improvement in demand” for domestic and some international routes for the rest of the second quarter, it said.
United expects its scheduled capacity to fall 75% in July from a year earlier. Scheduled capacity for May and June 2020 was reduced by approximately 90% from 2019 levels.
“The company plans to continue to proactively evaluate and cancel flights on a rolling 60-day basis until it sees signs of a recovery in demand,” United said.
United said it continues to expect that adjusted capital expenditures will come in below $4.5 billion for 2020. It anticipates adjusted capital expenditures will total close to $2 billion in 2021.
As previously disclosed, United plans to only take delivery of aircraft that are fully financed.
United shares stood at $24.83 in premarket trading, up 2.9%. The stock soared 21% Monday but has plummeted 70% over the past three months. That compares to a 15% drop for the S&P 500.