Jim Cramer: There's a Group That's Still Buying Airlines
United Airlines reported "the most difficult financial quarter in its 94-year history," swinging to a $1.63 billion second-quarter loss from a year-earlier profit on 87% lower revenue.
Amid the coronavirus pandemic, the Chicago carrier posted a loss of $5.79 a share, compared with profit of $1.05 billion, or $4.02 a share, in the year-earlier quarter. Revenue slumped to $1.48 billion from $11.4 billion.
The earnings and revenue were better than analysts expected. A survey of analysts by FactSet produced consensus estimates for the quarter of a loss of $7.39 a share on revenue of $1.32 billion.
At July 20 United Airlines said it had about $15.2 billion of available cash and expected that figure to grow to $18 billion by the end of the third quarter.
Chief Executive Scott Kirby said United Airlines minimized its losses by "accurately forecasting the impact that COVID would have on passenger and cargo demand, accurately matching our schedule to that reduced demand, completing the largest debt financing deal in aviation history, and cutting expenses across our business."
Jim Cramer discusses the airline stocks and what's going on with them.