July 7, 2022

United Airlines (UAL) 1Q 22 Revenue

Boeing 777ER United Airlines. Flight to Fiumicino Leonardo da Vinci Airport.

Massimo Insabato | Montadori Portfolio | Getty Images

United Airlines As bookings increase and passengers appear to be willing to pay higher fares, it expects to make a profit in 2022 for the first time before the outbreak.

Shares of United rose more than 6% in the after-trade on Wednesday, giving it an encouraging outlook.

The forecast indicates that airlines are at a turning point in the epidemic recovery, as the fall in coveted cases has spurred renewed demand for travel and has prompted the public not to shy away from higher ticket prices despite inflation hitting home budgets.

In the second quarter, United forecasts an operating limit of 10%, the highest quarterly sales in its history, with passenger revenue up 17% over 2019 as higher fares contribute to cost increases.

The Chicago-based airline is the second largest U.S. carrier to report results and provides an overview of peak spring and summer travel, with airlines generating the bulk of their annual revenue. Delta Airlines It reiterated last week that profits would return this year.

Despite strong demand, United remains challenged to add potential. Its 52 Brad & Whitney– Running Boeing The 777s have landed some of the largest aircraft in its fleet since engine failure in February 2021 and will not return until mid-May. CNBC reported Earlier this month. And the delivery of the new Boeing 787 Dreamliners has been suspended for the past 18 months due to production defects.

The airline is facing a shortage of pilots, especially among the regional carriers that feed its hubs, which is a problem throughout the industry.

Here’s how United worked First quarter Based on average estimates compiled by Refinitiv, compared to what Wall Street expects:

  • Adjusted loss per share: $ 4.24 and the expected $ 4.22.
  • Total Revenue: $ 7.57 billion and $ 7.68 billion are expected.

United reported a $ 1.4 billion loss in first-quarter revenue of $ 7.57 billion. That revenue level is better than the $ 9.59 billion it announced three years ago but more than double the $ 3.22 billion it was a year ago.

Adjusting items once recorded a loss of $ 4.24 per share.

The company paid $ 2.88 a gallon for fuel in the first quarter, up from $ 2.05 in 2019 and $ 1.74 last year. Excluding fuel, its costs increased by 18% over the same period in 2019.

In the second quarter, United expects costs other than fuel to rise by 16% against 2019.

After the Govt cases peaked this winter, air bookings increased exponentially and then eased this winter, making it easier for carriers to rock start to 2022. After more than two years of epidemics, airline executives expect many of the co-opted passengers to continue to travel despite rising fares.

United plan to fly 87% of its 2019 schedule in the second quarter. Combined with Delta, it is more cautious in adding capacity compared to rivals like United American Airlines And fast-growing budget airlines Spirit Airlines.

“As the company’s Brad & Whitney-powered Boeing 777 is expected to gradually return to service, the company will re-add capacity based on its ability to better serve customers. Reliability,” United said in a revenue statement.

However, some carriers, Spirit, Alaska Airlines and Jet Blue Airways There are Organizing spring and summer schedules Shake the room to go to disasters like bad weather or staff shortage.

Robert Isom is the new CEO of American Airlines Told staff Credibility has been very important this season for the past week. Customers in the U.S. and other carriers faced massive deals and cancellations last year.

United executives will discuss the results with analysts and the media at a 10:30 ET call on Thursday morning. American Airlines will announce its results before the market opens on Thursday and make a call at 8:30 ET.