United Airlines Projects a Current-Quarter Loss

In a regulatory filing, the carrier said it would incur a loss in the current quarter due to lower demand and higher costs

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Bill McColl
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Published March 14, 2023
United Airlines Planes

Jeenah Moon / Stringer / Getty Images

United Airlines Holdings (UAL) is the worst-performing stock in the S&P 500 after the carrier said it would incur a loss in the current quarter due to lower demand and higher costs.

In a Form 8-K regulatory filing, the airline said it expects a first quarter loss of $0.60 to $1 per share. It had previously anticipated a profit of $0.50 to $1. United also predicted total revenue per available seat mile will be up 22% to 23%, lower than its earlier guidance of approximately 25%.

United explained that it was “observing new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months.”

The airline also raised its outlook for the price of fuel, which it now sees as being between $3.31 and $3.41 per gallon, up from its prior estimate of $3.19 per gallon.

New Contract for Pilots

The company also reported that it will now accrue expenses in the quarter related to a potential new labor agreement with its pilots. It had originally planned to count those expenses in the second quarter. 

Shares of United Airlines Holdings are down 4% today, although they’re up 34% in the past 12 months.

UAL Return YTD

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  1. United Airlines Holdings. "SEC Form 8-K Regulatory Filing for United Airlines Holdings, Inc."

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