United Airlines' Q1 revenue was US$12.54 billion, up 9.7% year over year, exceeding market expectations of US$12.45 billion; adjusted loss per share was $0.15, with an average expected loss of $0.58 per share.
The Zhitong Finance App learned that on April 17, United Airlines (UAL.US) announced the results for the first quarter of 2024. Financial reports show that United Airlines' Q1 revenue was US$12.54 billion, up 9.7% year on year, exceeding market expectations of US$12.45 billion; the adjusted loss per share was US$0.15, with an average expected loss of US$0.58 per share. United Airlines said that compared to before the pandemic, the demand environment in the first quarter was still strong, and business demand continued to increase by double digits.
United Airlines lost $124 million in the first quarter due to Alaska Airlines Max airliners grounded all Boeing 737 Max 9 aircraft for three weeks due to a panel explosion in January. The company said the grounding caused $2 billion in losses, enough to turn this quarter's meager profits into losses.
United Airlines said it will receive far fewer new aircraft from Boeing this year than expected and has begun leasing Airbus aircraft to boost its fleet.
Boeing is having trouble producing and delivering Max jets, and United Airlines currently expects to receive 61 Max jets this year, which is about two-thirds less than a few months ago. United Airlines is already asking its pilots to voluntarily take unpaid leave next month, and the request may be extended until the fall due to a shortage of aircraft.
Investigations into the Alaska plane blowout are expected to further delay Boeing's launch of a new, larger model, the Max 10, which was ordered by United Airlines. Instead, United said it will lease 35 Airbus aircraft, which will appear in 2026 and 2027. United Airlines is also requesting the Max 9 from Boeing to replace part of the Max 10 it ordered.
Performance Guidelines
The airline's financial results show continued strong demand for air travel, particularly within the US and across the Atlantic. Earnings for the second quarter are expected to be better-than-expected, and earnings per share are expected to be between $3.75 and $4.25, higher than analysts' average forecast of $3.73 per share.
United Airlines expects full-year adjusted earnings of between $9 and $11 per share, compared to the general market expectation of $9.43.