United Airlines to ‘capitalise on opportunity only $UAL has’ after Q1 earnings

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on Apr 16, 2024
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  • United Airlines reported its financial results for the first quarter today.
  • Here's what its CEO Scott Kirby said in a press release on Tuesday.
  • United Airlines stock is now up over 15% versus its year-to-date low.

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United Airlines Holdings Inc (NASDAQ: UAL) is trending up in extended hours on Tuesday after reporting better-than-expected financial results for its first quarter as the “demand environment remained strong”.

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United Airlines stock pops on upbeat guidance

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Shares of the air carrier are in the green in after-hours also because its management issued upbeat guidance for the future. $UAL now forecasts its per-share earnings to fall between $3.75 and $4.25 in Q2.

Analysts, in comparison, were at $3.73 a share. Scott Kirby – the chief executive of United Airlines said in a press release today:

We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver.

The Nasdaq-listed airline improved capacity by 9.1% and achieved second-best on-time departure performance in its first financial quarter. United Airlines stock is now up more than 15% versus its year-to-date low.

United Airlines Q1 earnings snapshot

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  • Lost $124 million versus the year-ago $194 million
  • Per-share loss also narrowed from 59 cents to 38 cents
  • Adjusted loss printed at 15 cents as per the earnings report
  • Revenue jumped 10% year-over-year to $12.53 billion
  • Consensus was 58 cents a share on $12.45 billion revenue

United Airlines blamed ongoing issues at Boeing for its loss in the first quarter. CEO Kirby added on Tuesday:

We’ll use those planes to capitalise on opportunity only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in industry coastal hubs.

Wall Street currently has a consensus “overweight” rating on $UAL. Peer Delta Air Lines also touted solid travel demand as it reported its Q1 financial results last week.

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