United Airlines forecasts first-quarter loss
Ground personnel guide a United Airlines plane to the gates of Terminal A at Newark Liberty International Airport (EWR) in Newark, NJ, USA, Thursday, January 12, 2023.
Aristide Economopoulos | Bloomberg | Bloomberg | Getty Images
united airlines Shares fell about 4% on Tuesday after the airline predicted first-quarter losses. weak demand It grows and has higher fuel costs compared to other months.
The company also said that although negotiations are ongoing, costs related to new contracts with pilots will occur sooner than previously forecast in the first quarter.
The company expects an adjusted quarterly loss of 60 cents to $1 per share, down from its previous forecast of adjusted earnings of 50 cents to $1 per share for the first three months of the year. increase.
“Although all months in 2023 are expected to generate significantly higher unit revenue than their 2019 counterparts, we expect low demand months such as January and February 2023 to We are observing a new seasonal demand pattern with slower growth than the month.” securities filing After the market closes on Monday.
As a result, the company said it lowered its unit revenue estimate to 23% from 22% year-on-year, down from previous guidance of a 25% increase.
As travelers return to more traditional booking patterns, such as traveling closer to holidays and other popular holiday periods, second-quarter revenues were lower than last year’s “mid-teens” operating revenues, with United’s The company said it is likely to be higher than previously expected. Said.
The airline said it expected earnings of $10 to $12 per share. this yearadjusted base.
The Chicago-based airline is scheduled to attend the JP Morgan industry conference on Tuesday, along with other airlines, including Delta Air Lines. American and jet blue.
Delta expects a net loss of $100 million to $200 million in the first quarter. He also reaffirmed his forecast for first-quarter earnings per share of 15 cents to 40 cents on an adjusted basis.
CEO Ed Bastian said on CNBC’s “Squawk Box” on Tuesday that travel demand is resilient.
Summarize this content to 100 words Ground personnel guide a United Airlines plane to the gates of Terminal A at Newark Liberty International Airport (EWR) in Newark, NJ, USA, Thursday, January 12, 2023.Aristide Economopoulos | Bloomberg | Bloomberg | Getty Imagesunited airlines Shares fell about 4% on Tuesday after the airline predicted first-quarter losses. weak demand It grows and has higher fuel costs compared to other months.The company also said that although negotiations are ongoing, costs related to new contracts with pilots will occur sooner than previously forecast in the first quarter.The company expects an adjusted quarterly loss of 60 cents to $1 per share, down from its previous forecast of adjusted earnings of 50 cents to $1 per share for the first three months of the year. increase.“Although all months in 2023 are expected to generate significantly higher unit revenue than their 2019 counterparts, we expect low demand months such as January and February 2023 to We are observing a new seasonal demand pattern with slower growth than the month.” securities filing After the market closes on Monday.As a result, the company said it lowered its unit revenue estimate to 23% from 22% year-on-year, down from previous guidance of a 25% increase.As travelers return to more traditional booking patterns, such as traveling closer to holidays and other popular holiday periods, second-quarter revenues were lower than last year’s “mid-teens” operating revenues, with United’s The company said it is likely to be higher than previously expected. Said.The airline said it expected earnings of $10 to $12 per share. this yearadjusted base.The Chicago-based airline is scheduled to attend the JP Morgan industry conference on Tuesday, along with other airlines, including Delta Air Lines. American and jet blue.Delta expects a net loss of $100 million to $200 million in the first quarter. He also reaffirmed his forecast for first-quarter earnings per share of 15 cents to 40 cents on an adjusted basis.CEO Ed Bastian said on CNBC’s “Squawk Box” on Tuesday that travel demand is resilient.
https://www.cnbc.com/2023/03/13/united-shares-tumble-after-airline-forecasts-first-quarter-loss.html United Airlines forecasts first-quarter loss
