2024-01-22 16:29:50 ET
United Airlines Holdings Inc (NASDAQ: UAL) is up 7.0% in extended hours on Monday even though it warned of a loss for the first three months of 2024.
Why does UAL expect a loss in the first quarter
The air carrier now expects to lose between 35 cents and 85 cents in the first quarter related primarily to dozens of its planes that the FAA grounded following the Alaska Airlines incident on January 5 th .
Still, shares of United Airlines are trading up in after-hours partially because bookings this year have remained rather resilient so far. Scott Kirby – its chief executive said in a press release today:
Our plans really came together in 2023. Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for customers.
UAL anticipates $9 a share to $11 a share of adjusted earnings in fiscal 2024 – within Street estimates.
United Airlines Q4 earnings snapshot
United Airlines stock is in the green at writing also because its recent quarter financial results topped expectations.
- Earned $600 million versus the year-ago $843 million
- Per-share earnings also declined from $2.55 to $1.81
- Adjusted EPS printed at $2.0 as per the press release
- Revenue went up nearly 10% year-on-year to $13.63 billion
- Consensus was $1.70 per share on $13.54 billion revenue
Fuel costed $3.13 per gallon on average to United Airlines in its Q4. CEO Kirby added on Monday:
Watch here: https://www.youtube.com/embed/POD6bHnnwlI?feature=oembedLooking ahead, United Airlines is incredibly well positioned to capitalise on [trends] and to deliver on our short and long-term financial targets.
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