CHICAGO, Jan 22 (Reuters) – United Airlines (UAL.O), opens new tab on Monday provided an upbeat outlook for the full year despite warning of a wider-than-expected loss in the quarter through March due to the grounding of Boeing (BA.N), opens new tab 737 MAX 9 airplanes.
The company’s shares were up about 8% in extended trading, after closing down 1% at $38.45 in the regular session.
United, along with rivals Delta Air Lines (DAL.N), opens new tab and American Airlines (AAL.O), opens new tab, has benefited from increased demand for premium travel after the pandemic. It expects revenue from high-margin premium offerings to remain strong, helping generate an adjusted profit of $9-$11 per share in 2024. That compares with $9.58 per share expected by Wall Street analysts.
“Overall demand for travel remains strong and is expected to grow in the years ahead,” said Christopher Raite, senior analyst at research firm Third Bridge.
United, however, expects an adjusted first-quarter loss in the range of 35 to 85 cents a share, assuming all MAX 9 planes remain grounded through the end of January. Analysts expected the company to report a quarterly loss of 21 cents a share.
The U.S. aviation regulator this month grounded MAX 9 jets indefinitely for safety checks after a cabin panel fell off during an Alaska Airlines (ALK.N), opens new tab flight on Jan. 5, leaving a gaping hole in a jet full of passengers, necessitating an emergency landing.
Source: https://www.reuters.com/business/aerospace-defense/united-airlines-forecasts-quarterly-loss-boeing-max-9-grounding-2024-01-22/
