UnitedAir sinks as loss undermines vow to ‘lead the rebound’

United Airlines fell the most amongU.S. airlines as a larger-than- expected loss undermined the company’s vow to out perform competitors once customers start flying again.

The carrier posted a third- quarter adjusted loss of $8.16 a share, worse than the $7.47 shortfall that was the average of analyst estimates. That weakened the company’s attempt to woo investors by using its thirdquarter earnings statement Wednesday to say it would “lead the rebound” after an unprecedented drop in air travel.

“United believes their plan positions them to win the recovery,” Helane Becker, an analyst at Cowen & Co., said in a note to clients. “Given current demand and booking trends, we can’t poke holes in that thesis or strategy, but we note their hub structure appears to put them at a disadvantage without a rebound in international travel.”

Airlines still face a long, slow rebound as the coronavirus pandemic continues to hold domestic passenger numbers at about a third of last year’s levels -- with even deeper declines for international traffic. Since travel collapsed in March and April, U. S. carriers have slashed payrolls, parked jets, raised billions of dollars through debt deals and received $25 billion in federal payroll support. Negotiations for additional government aid have stalled in Washington.

Unitedfell 4.7% to $33.93 at 10:32 a.m. in New York, the biggest drop on a Standard & Poor’s index of big U.S. airlines.

The shares tumbled 60% this year though Wednesday, also the worst performance on the industry stock gauge.

The company pointed to its success on lowering daily cash burn to $25million in the third quarter from$40million in the previous three-month period. With greater cost flexibility, United will benefit when demand returns.

The Chicago-based airline has bolstered its cash stockpile by raising more than $22 billion with debt offerings, stock sales and federal aid since March, giving it $19.4 billion in liquidity as of Sept. 30.

That trailed Delta Air Lines Inc.’s $21.6 billion. American Airlines, which reports third- quarter results Oct. 22, has raised around $13 billion.