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

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


Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. United Airlines Holdings. "SEC Form 8-K Regulatory Filing for United Airlines Holdings, Inc."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.