The Second Quarter Of United Airlines Is Expected To Be Profitable Despite A Net Loss

As the peak summer travel season begins, United Airlines could turn a profit in the second quarter, when it reported a loss in the first quarter of the year.

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Although some economic predictions call for a slowdown in the spring and summer, United joined Delta Air Lines in reporting strong travel demand. Revenues are expected to rise 14% to 16% from last year in the second quarter according to United. Adjusted earnings per share will be $3.50 to $4.

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According to average estimates compiled by Refinitiv, United did better than Wall Street expected in the first quarter:

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• Loss per share adjusted for inflation: 63 cents versus 73 cents expected
• Revenue: $11.43 billion versus $11.42 billion expected

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There was a $3.32 billion increase in United's revenue for the three-month period that ended March 31, essentially meeting analysts' forecasts and exceeding their expectations by more than 51% compared with the previous quarter. As a result of the company's financial performance, United had a net loss of $194 million in the first quarter of the year, which is a loss of 59 cents a share, which is a reduction from last year's loss of $1.4 billion, or a loss of $4.24 a share.  

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In the adjusted results, United was down 63 cents per share, a much narrower loss than the 73 cents expected by analysts polled by Refinitv, but still at the higher end of the previously stated range of a loss per share ranging from 60 cents to $1. With one-time items adjusted, United was down 63 cents per share.

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Analysts and the media will be able to hear United executives discuss results at 10:30 a.m. on Wednesday.

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