CHICAGO — Shares of United Airlines’ parent, UAL Corp., fell 5.9 percent Monday after a veteran industry analyst downgraded the company, citing festering labor discord he said includes pilots calling in sick and working the minimum number of hours required.
Analyst James Higgins of Soleil Securities Group said there is “rising evidence” that actions by pilots contributed to the carrier’s bad December in which it had double the industry average number of delays. He said such actions are legal but threaten the company’s profits.
Shares in the company fell $1.82 to $29.18 in Monday trading after touching a 15-month low of $27.85, at which point they were down 10.2 percent for the session.
United has blamed the raft of cancellations and delays largely on the worst December weather in its 80-year history, while the pilots’ union has claimed staffing shortages were at fault.
Neither the company nor the Air Line Pilots Association responded immediately to requests for comment on the analyst’s report.
Higgins said his profit and revenue estimates for the company are now not much more than educated guesses, because the airline may be forced to offer fewer flights.
