A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco Global Airport.
Justin Sullivan | Getty Photography
United Airlines on Tuesday slit its aircraft delivery expectations for the twelve months because it grapples with delays from Boeing, basically the most up to date airline to face enhance challenges due to the the manufacturer’s safety crisis.
United expects to receive just 61 recent narrow-physique planes this twelve months, down from 101 it acknowledged it had anticipated on the starting of the twelve months and contracts for as many as 183 planes in 2024.
“We now possess adjusted our rapid notion to better replicate the fact of what the manufacturers are ready to ship,” CEO Scott Kirby acknowledged in an earnings open. “And, we’ll utilize these planes to capitalize on a likelihood that handiest United has: profitably grow our mid-continent hubs and delay our extremely winning world community from our handiest in the industry coastal hubs.”
United acknowledged it plans to rent 35 Airbus A321neos in 2026 and 2027, turning to Boeing’s rival for recent planes because the U.S. manufacturer faces caps on its production and elevated federal scrutiny. In January, United acknowledged it modified into once taking Boeing’s no longer-but-certified Max 10 out of its rapid notion. The airline acknowledged it has transformed some Max 10 planes for Max 9s.
It diminished its annual capital expenditure estimate to $6.5 billion from about $9 billion.
United will possible be facing a Federal Aviation Administration safety evaluation, which has prevented some of its planned enhance. A spokeswoman told CNBC earlier this month that the carrier will must build off its planned carrier from Newark, Unique Jersey, to Faro, Portugal, and carrier between Tokyo and Cebu, Philippines.
United earlier this month postponed its investor day, which modified into once scheduled for Could well, “because our entire group is centered on cooperating with the FAA to look at our safety protocols and it will merely send the frightful message to our group to possess a thrilling investor day centered totally on monetary results.”
The airline acknowledged it will possess reported a profit for the quarter if no longer for a $200 million hit from the rapid grounding of the Boeing 737 Max 9 in January.
The Federal Aviation Administration briefly grounded these jets after a door hasten blew out minutes into an Alaska Airlines flight, sparking a recent safety crisis for Boeing and slowing deliveries of its planes to customers including United, Southwest and others.
The airline posted a catch loss of $124 million or a loss of 38 cents a half, in the first quarter when put next with a $194 million loss a twelve months earlier, or 59 cents a half. Income rose nearly 10% in the first quarter when put next with the twelve months-precedent days to $12.54 billion, with skill up extra than 9% on the twelve months.
Right here’s what United reported in the first quarter when put next with what Wall Avenue anticipated, primarily primarily based completely on life like estimates compiled by LSEG:
- Loss per half: 15 cents adjusted vs. a loss of 57 cents anticipated
- Income: $12.54 billion vs. $12.45 billion anticipated
The airline expects to put up earnings of between $3.75 and $4.25 in the 2d quarter, prior to analysts’ estimates of about $3.76 a half. Airlines accomplish the massive majority of their profits in the 2d and third quarters, at some level of peak creep season.
The carrier also reiterated its fats-twelve months earnings forecast of between $9 and $11 a half.
United’s shares were up extra than 4% in after-hours trading on Tuesday.
United executives will merit a name with analysts at 10:30 a.m. ET on Wednesday.
