CHICAGO - United Airlines has projected a loss for the first quarter (Q1) following the grounding of its Boeing (NYSE:BA) 737 Max 9 aircraft, stemming from an incident earlier this month. The airline anticipates the loss to be between 35 and 85 cents per share. This expected downturn follows a strong performance in the fourth quarter (Q4) of the previous year, where United reported a substantial profit and revenue that surpassed market expectations.
In the earnings report for Q4, United Airlines announced a profit of $600 million with a revenue of $13.63 billion. The earnings, adjusted to $2 per share, exceeded analyst predictions. Despite the setback expected in Q1, United remains optimistic about the full year, projecting a profit ranging between $9 and $11 per share.
Following the earnings announcement, United's shares experienced volatility, initially dropping but subsequently recovering some ground in the extended trading hours. The grounding of the Boeing 737 Max 9 fleet is a response to the incident that occurred on January 5, which has since impacted United's short-term financial outlook. However, the airline has managed to maintain a positive forecast for the remainder of the year.
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