United Airlines Stock Takes Off On Q1 Earnings Beat: The Details
Portfolio Pulse from Adam Eckert
United Airlines Holdings Inc (UAL) reported Q1 earnings with revenue of $12.539 billion, surpassing the consensus estimate of $12.4 billion. The adjusted quarterly loss was 15 cents per share, better than the expected 57 cents per share loss. Capacity increased by 9.1% year-over-year, with slight changes in TRASM and CASM. United adjusted its fleet plan, converting some Boeing Co (BA) Max 10 orders to Max 9 for 2025-2027 and planning to lease 35 Airbus A321neos for 2026-2027. The company ended the quarter with $16.9 billion in liquidity and $27.2 billion in debt. United reiterated its full-year 2024 earnings outlook of $9 to $11 per share and adjusted its aircraft delivery schedule for 2024. United's shares rose 4.75% in after-hours trading to $43.47.
April 16, 2024 | 8:30 pm
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NEUTRAL IMPACT
United Airlines adjusted its fleet plan by converting some Boeing Max 10 orders to Max 9 for 2025-2027, indicating a strategic shift in its aircraft procurement strategy.
While the conversion of orders from Boeing Max 10 to Max 9 reflects a change in United's fleet strategy, the direct impact on Boeing's stock is less clear. It indicates ongoing business with United but doesn't necessarily imply a significant increase or decrease in Boeing's overall order book value in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
United Airlines reported better-than-expected Q1 earnings, with revenue exceeding estimates and a narrower loss per share. The company also confirmed its earnings outlook for 2024 and adjusted its aircraft delivery and fleet plan.
The positive earnings report and the confirmation of the 2024 earnings outlook, along with strategic adjustments to the fleet plan, signal strong operational performance and strategic foresight. This is likely to instill confidence in investors, potentially driving the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100