United Air Abandons 2020 Profit Goal on Coronavirus Outbreak
- Carrier says target still in reach if flights normalize soon
- Mastercard also joins chorus of companies warning of impact
United Airlines Holdings Inc. withdrew its 2020 profit forecast, citing the financial impact of the coronavirus outbreak in China.
The uncertainty surrounding the virus means United can’t guarantee its earlier goal of earning $11 to $13 a share this year, according to a regulatory filing Monday. The earnings target is still within reach if the outbreak runs its course by mid-May and travel patterns return to normal in the five months after that, United said.
The airline’s caution underscores the worsening financial drag as the spread of the new coronavirus stymies global travel. Airlines around the world have halted flights to China, while in other industries companies from Apple Inc. to Puma SE have warned that the virus threatens their results. Mastercard is the latest to join the chorus, lowering its forecast for revenue growth.