United Airlines Surges Over 13% After Strong Earnings Forecast; Cuts 2024 Boeing Fleet Plan Due to Delays

Amid Boeing’s quality crisis, United Airlines significantly reduced its anticipated aircraft deliveries for the year. Consequently, the airline plans to incorporate leased Airbus A321neo jets into its fleet in the coming years. United’s revised forecast entails receiving only 61 new narrow-body planes this year, a notable decrease from the initial projection of 101. Despite these challenges, the U.S. carrier remains optimistic, forecasting second-quarter earnings between $3.75 to $4.25 per share, surpassing market expectations.

The airline expects to post earnings of between $3.75 and $4.25 in the second quarter, ahead of analysts’ estimates of about $3.76 a share. Airlines make the bulk of their profits in the second and third quarters, during peak travel season.

United cut its aircraft-delivery expectations for the year. It expects it will receive just 61 new narrow-body planes this year, down from 101 it said it had anticipated at the beginning of the year and contracts for as many as 183 planes in 2024.

“We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver,” CEO Scott Kirby said in an earnings release. “And, we’ll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs.”

Despite the earnings surge and strategic fleet adjustments, United Airlines remains vigilant amid ongoing challenges. The airline acknowledges the importance of adaptability and resilience in navigating uncertainties. Additionally, United Airlines reaffirms its commitment to delivering value to shareholders while prioritizing passenger safety and satisfaction.
read more
image source