Shares of United Continental fell nearly 6 percent Wednesday after the airline gave third-quarter guidance that implied it may miss Wall Street’s earnings estimates for the period.
The airline said it expects revenue per available seat mile (RASM) — a key metric for airlines — to range between a 1 percent decline and 1 percent growth.
“[W]e believe few were braced for a -1% to +1% outcome, which (obviously) once again raises the specter of declining RASM,” JPMorgan analyst Jamie Baker said in a note Tuesday.
