United Airlines Slips 6% After Issuing Q1 Outlook

(RTTNews) - Shares of United Airlines Holdings Inc. (UAL) slipped over 6% in the extended session Monday after the airline issued an outlook for the first quarter, which was lower than Wall Street's estimates.

United said it expects a quarterly loss between $0.60 per share and $1 per share, while analysts polled by Thomson Reuters currently estimate the company report earnings of $0.64 per share. Analysts' estimates typically exclude one-time items.

"While all months of 2023 are expected to produce unit revenue significantly above the corresponding months in 2019, the company is observing new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months," the company said in an SEC filing. Due to this, the company now expects total revenue per available seat mile or TRASM for the first quarter of 2023 to increase between 22% to 23% for the first quarter, compared to the prior estimate of about 25%.

Further, the company said oil prices and crack spreads have remained elevated as compared to the forward curve used for previous guidance of $3.19 per gallon for the first quarter of 2023. As a result, the company now expects a first-quarter 2023 average fuel price per gallon of between $3.31 and $3.41.

For the full year 2023, United expects adjusted earnings per share of $10 to $12. Analysts currently estimate earnings of $8.70 per share for the year.