earnings
confidence high
sentiment negative
materiality 0.75
United Airlines cuts Q1 guidance to loss of $0.60-$1.00 EPS on pilot contract accrual, higher fuel
United Airlines Holdings, Inc.
- Now expects Q1 adjusted diluted loss per share of $0.60-$1.00, vs prior guidance of profit $0.50-$1.00.
- Accruing expense for new pilot contract, shifting expense from Q2 to Q1; Q1 CASM-ex flat to +1% YoY (prior -3% to -4%).
- Q1 revenue guidance raised to ~51% YoY (prior ~50%), capacity now ~23% vs ~20% on better completion rates.
- Q1 TRASM expected up 22%-23% (prior ~25%) due to seasonality shift; Q2 revenue seen up mid-teens vs Q2 2022.
- Q1 fuel price guidance raised to $3.31-$3.41 from $3.19. Full-year adjusted EPS reaffirmed at $10-$12, pre-tax margin ~9%.