United shares tumble after airline forecasts first-quarter loss

United shares tumble after airline forecasts first-quarter loss


A grounds crew member directs an United Airlines airplane to a gate at Terminal A at Newark Liberty International Airport (EWR) in Newark, New Jersey, US, on Thursday, Jan. 12, 2023.

Aristide Economopoulos | Bloomberg | Getty Images

United Airlines shares fell about 6% in afterhours trading on Monday after the carrier forecast a first-quarter loss, citing weaker demand growth compared with other months and higher fuel costs.

The carrier expects an adjusted quarterly loss of between 60 cents and $1 per share, down from its previous projections of adjusted earnings of between 50 cents and $1 per share for the first three months of the year.

related investing news

Credit Suisse downgrades Logitech, says there's little hope for growth ahead

CNBC Pro

“While all months of 2023 are expected to produce unit revenue significantly above the corresponding months in 2019, the Company is observing new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months,” United said in a securities filing after the market closed on Monday.

The carrier said as a result it trimmed its estimate for unit revenues to between 22% and 23% over a year earlier, down from previous guidance of a 25% increase.

As travelers return to more traditional booking patterns, such as traveling close to holidays and other popular vacation periods, second-quarter revenue will likely be higher than United previously expected with operating revenue up in the “mid-teens” over last year, the company said.

The airline said it still expects to earn between $10 and $12 a share this year, on an adjusted basis.

The Chicago-based carrier is scheduled to present at a JP Morgan industry conference on Tuesday along with other airlines including Delta, American and JetBlue.



Source

How wealthy yacht buyers plan to avoid the European tariffs
Business

How wealthy yacht buyers plan to avoid the European tariffs

Superyachts in Port Hercules, Monaco. John Lamb | The Image Bank | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. American boat buyers and European shipyards are scrambling to […]

Read More
Best Buy, Ikea test new kitchen concept in U.S. stores
Business

Best Buy, Ikea test new kitchen concept in U.S. stores

The logo of Best Buy and Ikea on shopping carts. Getty Images Best Buy said Thursday it will test mini-showrooms in some of its stores featuring Ikea products to show off kitchen design elements from the home retailer beside home appliances from the electronics store. Beginning this fall, the program will debut in 10 Best […]

Read More
JPMorgan marks 1,000th branch opening since 2018 expansion plans
Business

JPMorgan marks 1,000th branch opening since 2018 expansion plans

A new JPMorgan Chase branch in Charlotte, North Carolina. Courtesy: JPMorgan Chase JPMorgan Chase has built 1,000 new branches in seven years. That’s more locations than most of its competitors operate in total.  The bank is marking the milestone opening in Charlotte, North Carolina, on Thursday where Chairman and CEO Jamie Dimon is attending a […]

Read More