Boston, MA 06/13/2014 (wallstreetpr) – United Continental Holdings Inc (NYSE:UAL) declined the most in two months as Deutsche Lufthansa reduced its earnings outlook and the World Bank also cut its global growth forecast.
United Continental Holdings Inc (NYSE:UAL) reported a fall of as much as 5.2% down to $45.26 in New York, which is the greatest fall for the airline since April 24. The Chicago based airline was hurt by the World Bank’s announcement which predicted that the global economy would surge only by a 2.8% growth this year, instead of the earlier prediction which cited a growth of 3.2%. According to a Skyline Research analyst, Kevin Crissey, based in Mahwah, New Jersey, this was the reason that the stocks declined.
Another contributing factor to the decline comes from the reduction in Lufthansa’s outlook, which predicted operating profits of about 1 billion euros this year. The previous predictions quoted a figure of 1.2 to 1.5 billion euros. It lowered its predictions by almost 500 million euros for 2014 and by almost 650 million euros for the next year. The Koeln, Germnay based company was hurt by the surge in competition from Middle Eastern airlines with the added labor problems among pilots.
No Worries
Contradictory to the decline, Analysts Crissey and Bob McAdoo, who is an analyst with the Imperial Capital in Los Angeles does not see United to face like threats from Gulf carriers as the European airlines, including Lufthansa. This is because it does not have flights on the routes from Scotland or Germany to the Middle East or India.
United Continental airline is the unquestionable leader among airlines of the U.S. when it comes to the Ease Asian flights. After the reported fall, the company’s leader said that the airlines’ San Francisco hub has higher number of non- stop flights than all other U.S. airline hub. United’s leaders also swanked that United Continental Holdings Inc (NYSE:UAL)’s total flights to China is more than the total flights that the other airlines jointly offer.
