United Airlines (UAL) has reported a financial loss for this year’s first quarter as it struggles with order delays from troubled aircraft manufacturer Boeing Co. (BA).
The Chicago-based carrier reported a Q1 loss per share of $0.15 U.S. However, that was better than the loss of $0.57 U.S. that was expected on Wall Street.
Revenue in the quarter totaled $12.54 billion U.S. versus $12.45 billion U.S. that was expected among analysts.
Management said that the quarterly earnings were negatively impacted by growth challenges caused by delayed aircraft deliveries from Boeing.
Boeing has been forced by regulators to slow its production of commercial aircraft after encountering several safety problems since the start of the year.
United said that it now expects to receive 61 narrow-body planes from Boeing this year, down from 101 at the start of the year.
To compensate for the fewer deliveries, United said it plans to lease 35 Airbus (AIR) A321neo aircraft in 2026 and 2027, turning to Boeing’s main rival in commercial aircraft manufacturing.
The airline said it would have reported a Q1 profit of $200 million U.S. if not for the problems encountered with its Boeing orders.
However, United is also facing a Federal Aviation Administration (FAA) safety review, which has hampered its growth.
The company recently postponed its planned investor day scheduled for May, saying it wants to focus on cooperating with the FAA safety review.
In its earnings release, United lowered its annual capital expenditure estimate to $6.5 billion U.S. from $9 billion U.S. previously.
Management said they now expect to post earnings of $3.75 U.S. to $4.25 U.S. in the second quarter, ahead of analysts’ estimates of $3.76 U.S. per share.
The company also reiterated its full-year earnings forecast of between $9 U.S. and $11 U.S. a share.
The stock of United Airlines has risen 2% so far in 2024 and currently trades at $41.50 U.S. per share.
