United Airlines forecast first quarter loss
A member of the ground crew directs a United Airlines aircraft to a gate at Terminal A of Newark Liberty International Airport (EWR) in Newark, New Jersey, on Thursday, January 12, 2023.
Aristide Economopoulos | Bloomberg | Getty Images
United Airlines Shares fell about 6% in after-hours trading on Monday after the airline forecast a loss for the first quarter, citing weaker demand growth compared to other months and higher fuel costs.
The airline expects an adjusted quarterly loss of between 60 cents and $1 a share, compared to previous guidance of adjusted earnings of between 50 cents and $1 a share for the first three months of the year.
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“While all months of 2023 are expected to be significantly higher than the corresponding months of 2019, the Company is observing new seasonal demand patterns, with lower demand months such as January and February 2023 growing at a slower rate than higher demand months,” United said in a securities filing after the market closes on Monday.
The airline then announced that it had lowered its estimate for unit revenue to between 22% and 23% year over year, compared to the previous forecast of a 25% increase.
As travelers return to more traditional booking patterns, such as B. Travel near holidays and other popular vacation times, second-quarter revenue is likely to be higher than United previously expected, with operating income up “in the mid-teens” year-over-year, the company said.
The airline still expects earnings of between $10 and $12 per share this yearon an adjusted basis.
The Chicago-based airline is expected to present alongside other airlines at a JP Morgan industry conference on Tuesday delta, American And JetBlue.
https://www.cnbc.com/2023/03/13/united-shares-tumble-after-airline-forecasts-first-quarter-loss.html United Airlines forecast first quarter loss