A United Airlines Boeing 737 Max 9 lands at San Francisco International Airport.
Justin Sullivan | beautiful images
United Airlines on Tuesday reported strong travel demand that led it to a smaller-than-expected loss in the first quarter despite a $200 million hit due to the temporary grounding of Boeing 737 Max 9 aircraft in January. .
The Federal Aviation Administration temporarily grounded these jets after a The door plug is blown a few minutes after one Alaska Airlines flight, causing a new safety crisis for Boeing and slowing plane deliveries to customers including United, Southwest and others.
Here’s what United reported for the first quarter compared to what Wall Street expected, based on average estimates compiled by LSEG:
- Loss per share: 15 cents was adjusted against an expected loss of 57 cents
- Revenue: $12.54 billion compared to the expected 12.45 billion USD
The airline had a net loss of $124 million, or a loss of 38 cents a share, in the first quarter compared with a loss of $194 million a year earlier, or a loss of 59 cents a share. Revenue increased nearly 10% in the first quarter year over year to $12.54 billion, with capacity up more than 9% year over year.
United said it plans to lease 35 Airbus A321neos in 2026 and 2027, turning to rival Boeing for new planes as the US manufacturer faces its production limits and increased federal oversight. In January, United said it was removing Boeing’s uncertified Max 10s from its fleet plans. The airline said it has converted some Max 10 aircraft to Max 9s.
United expects to receive only 61 new narrow-body aircraft this year, down from the 101 it expected earlier this year.
“We have adjusted our fleet plans to better reflect the reality of what manufacturers can deliver,” CEO Scott Kirby said in an earnings call. “And, we will use those aircraft to take advantage of an opportunity that only United has: profitably growing our mid-continent hubs and expanding our highly profitable international network from the best coastal centers in our industry.”
The airline is expected to post earnings of between $3.75 and $4.25 in the second quarter, well above analysts’ estimates of about $3.76 a share. Airlines make most of their profits in the second and third quarters, during the peak travel season.
The carrier also reiterated its full-year earnings forecast of $9 to $11 per share.
United shares rose more than 4% in after-hours trading on Tuesday.
United executives will hold a call with analysts at 10:30 a.m. ET on Wednesday.
This is breaking news. Check back for updates.
