September 21, 2023
United Airways forecasts first-quarter loss

A grounds crew member directs an United Airways airplane to a gate at Terminal A at Newark Liberty Worldwide Airport (EWR) in Newark, New Jersey, US, on Thursday, Jan. 12, 2023.

Aristide Economopoulos | Bloomberg | Getty Photos

United Airways shares fell about 4% on Tuesday after the provider forecast a first-quarter loss, citing weaker demand progress in contrast with different months and better gasoline prices.

The corporate additionally stated it would accrue bills tied to a attainable new contract with its pilots within the first quarter, sooner than it beforehand forecast, though negotiations are ongoing.

The provider expects an adjusted quarterly lack of between 60 cents and $1 per share, down from its earlier projections of adjusted earnings of between 50 cents and $1 per share for the primary three months of the yr.

“Whereas all months of 2023 are anticipated to supply unit income considerably above the corresponding months in 2019, the Firm is observing new seasonal demand patterns, with lower-demand months corresponding to January and February 2023 rising lower than higher-demand months,” United stated in a securities submitting after the market closed on Monday.

The provider stated in consequence it trimmed its estimate for unit revenues to between 22% and 23% over a yr earlier, down from earlier steering of a 25% enhance.

As vacationers return to extra conventional reserving patterns, corresponding to touring near holidays and different fashionable trip intervals, second-quarter income will doubtless be increased than United beforehand anticipated with working income up within the “mid-teens” over final yr, the corporate stated.

The airline stated it nonetheless expects to earn between $10 and $12 a share this yr, on an adjusted foundation.

The Chicago-based provider is scheduled to current at a JP Morgan trade convention on Tuesday together with different airways together with Delta, American and JetBlue.

Delta forecast a internet lack of $100 million to $200 million for the primary quarter. Adjusting for prices tied to a brand new pilot contract, Delta expects quarterly revenue of $100 million to $200 million, or 15 cents to 40 cents a share.

CEO Ed Bastian instructed CNBC’s “Squawk Field” on Tuesday that journey demand has been resilient.

United Airways forecasts first-quarter loss