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Today we are watching…
1. United Continentalย (#united)
Investors held their breath as United Airlines delivered its quarterly financials yesterday. Everyone knew it wasnโt going to be pretty, 75% of planes grounded with almost no flights taking off. However, the real numbers were a punch to the gut. The company printed a $2.1 billion loss. It furloughed even more staff and even sent a plea to the White House for more bailout aid. United expects flying in June to be 90% of its pre-corona highs still, and so itโs making the decision now to ground planes and save costs. That means if you plan on jetting off on holiday in June and you havenโt booked a ticket yet, things could get pricey!
2. Virgin Galactic (#spce)
Virgin Galactic has resumed its march higher, up 80% in a month. Famous founder Richard Branson has other companies to worry about in his business empire. Virgin Australia entered voluntary administration yesterday. Itโs not listed on the stock market, so none of us are taking the loss. However, Bransonโs single main competitor is (or was) Qantas Airways, and that is a listed company. Qantas Airways has had the rug pulled from underneath it with coronavirus emasculating demand, but Sydney beaches just reopened. The country is on the mend. Without a competitor, the Qantas will have a legal monopoly over the Oceania jet stream! Interestingโฆ