A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport.
Justin Sullivan | Getty Images
United Airlines Strong travel demand made its first-quarter loss smaller than expected, despite a $200 million hit from the temporary grounding of Boeing’s 737 Max 9 in January, a report said on Tuesday.
The FAA temporarily grounded the planes minutes after door jams exploded Alaska Airlines flights, triggering a new safety crisis at Boeing and slowing deliveries of planes to customers including United Airlines, southwest and others.
Here’s how United’s first-quarter report compared with Wall Street expectations (based on an average of estimates compiled by London Stock Exchange Group):
- Loss per share: Adjusted 15 cents, expected loss 57 cents
- income: $12.54 $12.45 billion vs. $12.45 billion expected
The airline posted a net loss of $124 million in the first quarter. First-quarter revenue grew nearly 10% year-on-year to US$12.54 billion, with capacity increasing by more than 9% year-on-year.
United Airlines said it plans to lease 35 Airbus A321neo aircraft in 2026 and 2027, seeking new planes from Boeing’s rivals at a time when the U.S. manufacturer faces production caps and heightened federal scrutiny. In January, United said it would drop Boeing’s uncertified Max 10 aircraft from its fleet plans. The airline said it has converted some of its Max 10 aircraft into Max 9 aircraft.
United expects to take delivery of only 61 new narrow-body aircraft this year, down from the 101 expected at the beginning of the year.
The airline forecast second-quarter profit of $3.75 to $4.25, above analysts’ expectations of $3.76 per share. Airlines make most of their profits during the peak travel season in the second and third quarters.
The airline also reiterated its full-year profit forecast of $9 to $11 per share.
United executives will hold a conference call with analysts at 10:30 a.m. ET on Wednesday.
This is breaking news. Please check back for updates.
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