United Airlines expects to return to record profits during 2022 for the first time since the beginning of the epidemic, at a time when reservations are rising as travelers are willing to pay more money for air travel, which pushed United’s stock to rise by more than 7% during the extended hours after it published optimistic expectations. also.
For the second quarter, United expects to post an operating profit margin of 10% and collect the highest quarterly sales in its history with revenue per passenger growth of 17% compared to 2019 supported by wages that will offset higher expenses.
Despite strong demand, United is facing the challenges of expanding its passenger capacity, with its Boeing 777 aircraft being grounded due to engine failures, and a clear shortage of pilots.
United’s loss during the first quarter amounted to $1.4 billion, or $4.24 per share, to be worse than analysts’ expectations, which was a loss of $4.22. As for total revenue, it reached $7.57 billion, also failing to meet expectations of $7.68 billion. Its revenue is still well below the $9.59 billion in revenue for the same quarter of 2019, but more than double last year’s first quarter revenue of $3.22 billion.
The company paid $2.88 per gallon of fuel during the first quarter, after its price was no more than $2.05 in 2019 and about $1.74 last year. Excluding fuel, expenses for the company jumped by 18% compared to the same period in 2019, as for the second quarter. United expects expenses excluding fuel also to increase by 16% compared to 2019 levels. Read more [American results beat expectations in Q1].