A United Airlines Boeing 737 Max 9 plane lands at San Francisco International Airport.
Justin Sullivan | Getty Images
United Airlines reported strong travel demand on Tuesday, resulting in 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 these planes after a door plug blew out within minutes Alaska Airlines flight, creating a new safety crisis for Boeing and delaying deliveries of its planes to customers including United Southwest and others.
Here's what United reported in the first quarter, compared to what Wall Street expected, based on average estimates from LSEG:
- Loss per share: Adjusted 15 cents versus an expected loss of 57 cents
- Gain: $12.54 billion versus $12.45 billion expected
The airline posted a net loss of $124 million, or a loss of 38 cents per share, in the first quarter, compared with a loss of $194 million a year earlier, or 59 cents per share. Revenue rose nearly 10% in the first quarter compared to the same period last year to $12.54 billion, with capacity increasing more than 9% year-over-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 production cuts and increased federal scrutiny. In January, United said it would remove Boeing's yet-uncertified Max 10 from its fleet plan. The airline said it has converted some Max 10 aircraft to Max 9 aircraft.
United expects to receive only 61 new narrowbody aircraft this year, down from the 101 it expected at the beginning of the year.
“We have adjusted our fleet plan to better reflect the reality of what manufacturers can deliver,” CEO Scott Kirby said in a news release. “And we will use those aircraft to take advantage of an opportunity that only United has: profitably growing our midcontinent hubs and expanding our highly profitable international network of our best coastal hubs in the industry.”
The airline expects to post second-quarter earnings between $3.75 and $4.25, higher than analyst expectations of about $3.76 per share. Airlines make most of their profits in the second and third quarters, during the peak season.
The airline also reiterated its full-year earnings forecast of between $9 and $11 per share.
Shares of United rose more than 4% in after-hours trading on Tuesday.
United executives will hold a call with analysts on Wednesday at 10:30 a.m. ET.
This is the latest news. Check back for updates.