A United Airlines Boeing 737 Max 9 lands at San Francisco International Airport.
Justin Sullivan | Getty Images
United Airlines on Tuesday reported strong travel demand that led it to a smaller-than-expected first-quarter loss despite a $200 million impact from the temporary grounding of the Boeing 737 Max 9 in January.
The Federal Aviation Administration temporarily grounded these planes after a door jam exploded minutes later. Alaska Airlines flight, triggering a new safety crisis for Boeing and slowing deliveries of its planes to customers including 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 versus expected loss of 57 cents
- Income: $12.54 billion against $12.45 billion expected
The airline reported a net loss of $124 million in the first quarter. Revenue rose nearly 10% in the first quarter from the same period a year earlier to $12.54 billion, with capacity up more than 9% year-over-year. .
United has announced plans to lease 35 Airbus A321neos in 2026 and 2027, turning to rival Boeing for new planes as the U.S. maker faces production caps and increased federal oversight. In January, United announced it was removing Boeing’s not-yet-certified Max 10 from its fleet plan. The airline said it has converted some Max 10 aircraft to Max 9s.
United expects to receive just 61 new narrow-body planes this year, down from 101 expected at the start of the year.
The airline expects to post profit of between $3.75 and $4.25 in the second quarter, ahead of analysts’ estimates of around $3.76 per share. Airlines make most of their profits in the second and third quarters, during the peak tourist season.
The carrier also reiterated its annual profit forecast of between $9 and $11 per share.
United executives will hold a call with analysts at 10:30 a.m. ET Wednesday morning.
This is breaking news. Check back for updates.
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