A view of a United Airlines plane at Barcelona Airport in Barcelona, Spain, on February 27, 2023.
Joan Valls | Nurphoto | Getty Images
United Airlines reported a loss for the primary three months of the yr but forecast a profit for the second quarter, when the height summer travel season picks up.
United joined rival Delta Air Lines in reporting strong travel demand for the spring and summer, despite some predictions for an economic slowdown. For the second quarter, United expects adjusted earnings per share of $3.50 to $4 and revenues to rise 14% to 16% from last yr, on capability up 18.5% from last yr.
Here’s how United performed within the first quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted loss per share: lack of 63 cents versus an expected 73 cents
- Total revenue: $11.43 billion versus expected $11.42 billion
For the three months ended March 31, United generated $11.43 billion in revenue, essentially in step with analysts’ forecasts and up greater than 51% from the identical period last yr. United posted a net lack of $194 million, or a loss 59 cents a share, compared with a lack of $1.4 billion, or a loss $4.24 per share, in the primary quarter of last yr.
Adjusting for one-time items, United had a per-share lack of 63 cents, a narrower loss than the 73 cents that analysts polled by Refinitv were expecting, but on the stronger end of a previously stated range of a loss per share between 60 cents and $1.
Revenue per available seat mile, an indication of how much money airlines are generating compared with how much they’re flying, was up greater than 22% from a yr ago.
Unit costs were up 4% on the yr, but down 0.1% when stripping out fuel. The airline paid $3.33 a gallon for jet fuel, up from $2.88 a gallon in the primary quarter of 2022.
United executives will discuss results with analysts and media on Wednesday at 10:30 a.m.
Executives are more likely to face questions on growth constraints throughout the second and third quarters, when airlines make the majority of their revenue.
United and other airlines are planning to cut back flights within the Latest York area in the approaching months in response to a shortage of air traffic controllers, though carriers plan to make use of larger airplanes where possible.
