United Airlines maintains forecast after Q1 results top Wall Street estimates

April 16, 2024 4:57 PM EDT -- United Airlines on Tuesday maintained its outlook on earnings after the airline reported better-than-expected first-quarter results even as it suffered a $200 million hit from the temporary grounding of the Boeing (NYSE: BA) 737 Max 9 jets owing to regulatory concerns about safety.

United Airlines Holdings Inc (NASDAQ: UAL) was up more than 1% in afterhours trasding following the report.

United, the airline with the largest amount of 737 Max 9's in its fleet, kept its forecast for full-year adjusted earnings between $9 and $11 a share this year. For Q2, the company forecasts adjusted EPS of $3.75 to $4.25, in-line with analyst estimates for $3.76 a share.

For the quarter ended Mar.31, United reported adjusted loss of $0.38 per share on revenue of $12.54 billion. That topped estimates from analysts polled by for an adjusted loss of $0.57 per share on revenue of $12.46B.

The company flagged a $200 million from the grounding of the Boeing 737 9 jets after a mid-air cabin panel blowout on a model of the jet operated by Alaska Airlines earlier this year. Without the $200M hit, the company would have reported a quarterly profit, United Airlines said.

Total revenue per available seat mile, a key performance metric, was up 0.6% in Q1 compared to first-quarter 2023, indicating the airline is making more revenue from each set on its airlines.

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