A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport.
Justin Sullivan | fake images
united airlines on Tuesday reported strong travel demand that led to a smaller-than-expected first-quarter loss despite a $200 million hit from the temporary grounding of the Boeing 737 Max 9 in January.
The Federal Aviation Administration temporarily grounded those planes after a door plug burst minutes after a Alaska Airlines flight, causing a new safety crisis for Boeing and slowing deliveries of its planes to customers like United, South west and others.
Here's what United reported in the first quarter compared to what Wall Street expected, based on average estimates compiled by LSEG:
- Loss per share: 15 cents adjusted vs. expected loss of 57 cents
- Revenue: $12.54 billion versus the expected $12.45 billion
The airline posted a net loss of $124 million in the first quarter. Revenue rose nearly 10% in the first quarter compared to the same period a year earlier to $12.54 billion, with capacity up more than 9% on the year.
United said it plans to lease 35 Airbus A321neos in 2026 and 2027, turning to Boeing's rival for new planes as the U.S. manufacturer faces limits on its production and increased federal scrutiny. In January, United said it was removing Boeing's not-yet-certified Max 10 from its fleet plan. The airline said it has converted some Max 10 planes to Max 9s.
United expects to take delivery of just 61 new narrowbody jets this year, down from the 101 it expected at the beginning of the year.
The airline expects to post earnings of between $3.75 and $4.25 in the second quarter, above analysts' estimates of about $3.76 per share. Airlines make most of their profits in the second and third quarters, during peak travel seasons.
The airline also reiterated its full-year earnings guidance of between $9 and $11 per share.
United executives will hold a call with analysts at 10:30 a.m. ET on Wednesday morning.
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