United Air shares fall the most since early 2008 on Wednesday, air carrier announces more cuts in flight schedule for April

United Airlines Holdings Inc (UAL) revealed earlier this week a 60% cut in its flight schedule for April, as it highlighted the adverse effect from the coronavirus pandemic on demand for air travel.

Meanwhile, outbreak-related sell-off continued.

United Air shares closed lower for a third consecutive trading session on NASDAQ on Wednesday. It has also been the steepest single-session loss since April 22nd 2008. The stock went down 30.09% ($9.23) to $21.44, after touching an intraday low at $17.80, or a price level not seen since August 10th 2012 ($17.45).

Shares of United Airlines Holdings Inc have retreated 75.66% so far in 2020 compared with a 25.77% loss for the benchmark index, S&P 500 (SPX).

In 2019, United Air’s stock went up 5.21%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

Included in the cuts are a 42% reduction in flights across the United States and Canada as well as an 85% reduction in international flights, the company said.

The air carrier also said that it would operate around 45 flights per day across the Atlantic, Pacific and Latin America in April.

Analyst stock price forecast and recommendation

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $72.00, with a high estimate of $111.00 and a low estimate of $35.00. The median estimate represents a 235.82% upside compared to the closing price of $21.44 on March 18th.

The same media also reported that at least 9 out of 19 surveyed investment analysts had rated United Air’s stock as “Hold”, while 8 – as “Buy”.

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