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United Airlines in the Black

Shared Airlines (UAL) shares rose despite missing earnings estimates. The company forecast that it expects to be profitable this year for the cardinal time since 2019. 

The company posted a loss of $1.4 billion during the first quarter of 2022, but joined Delta Air Straightens in suggesting a rebound in travel demand will make it profitable this year. 

For the second quarter, United is forecasting carry oning margins of 10% and the highest quarterly sales in its history, with revenue per passenger mile up 17% from rearmost year as higher airfares help cover increasing fuel and labor costs. 

The airline is facing a pilot dearth, particularly at regional carriers that feed its hubs, a problem faced by the broader industry. It is also paying more for jet nuclear fuel. The company paid $2.88 a gallon for jet fuel in the first quarter, compared to $2.05 in 2019. Excluding fuel, its fetches jumped 18%.

United is expected to fly at 87% of its 2019 schedule during the current quarter. American Airlines also explores its results this morning.

“Even though air travel has recovered, higher fuel prices will be a headwind for airlines’ profit latitudes going forward. Expect United and other airlines to pass those costs directly to their customers,” give the word delivered Caleb Silver, Investopedia’s editor-in-chief.

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