United Continental: Solid Earnings but Dreadful Guidance

The company’s pre-tax margin slipped modestly relative to Q4 2015, but this was better than what the company had originally expected, thanks to an improvement in last-minute bookings that began in November. However, there was no reason for investors to cheer, as United projected that its adjusted pre-tax margin would sink to a meager 0.5% to 2.5% in the coming quarter.