United Airways (UAL) 1Q 2024 earnings

United Airlines on Tuesday minimize its aircraft-delivery expectations for the 12 months because it grapples with delays from Boeing, the most recent airline to face development challenges due to the plane-maker’s security disaster.

United expects to obtain simply 61 new narrow-body planes this 12 months, down from 101 it stated it had anticipated at the start of the 12 months and contracts for as many as 183 planes in 2024.

“We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver,” CEO Scott Kirby stated in an earnings launch. “And, we’ll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs.”

United stated it plans to lease 35 Airbus A321neos in 2026 and 2027, turning to Boeing’s rival for brand spanking new planes because the U.S. producer faces caps on its production and elevated federal scrutiny. In January, United stated it was taking Boeing’s not-yet-certified Max 10 out of its fleet plan. The airline stated it has transformed some Max 10 planes for Max 9s.

It lowered its annual capital expenditure estimate to $6.5 billion from about $9 billion.

United can also be going through a Federal Aviation Administration security overview, which has prevented a few of its deliberate development. A spokeswoman informed CNBC earlier this month that the service should postpone its deliberate service from Newark, New Jersey, to Faro, Portugal, and repair between Tokyo and Cebu, Philippines.

United earlier this month postponed its investor day, which was scheduled for Might, “because our entire team is focused on cooperating with the FAA to review our safety protocols and it would simply send the wrong message to our team to have an exciting investor day focused primarily on financial results.”

The airline stated it will have reported a revenue for the quarter if not for a $200 million hit from the non permanent grounding of the Boeing 737 Max 9 in January.

The FAA briefly grounded these jets after a door plug blew out minutes into an Alaska Airlines flight, sparking a brand new security disaster for Boeing and slowing deliveries of its planes to clients together with United, Southwest and others.

The airline posted a internet lack of $124 million, or a lack of 38 cents a share, within the first quarter in contrast with a $194 million loss, or 59 cents, a 12 months earlier. Income rose practically 10% within the first quarter in contrast with the year-earlier interval to $12.54 billion, with capability up greater than 9% on the 12 months.

Here is what United reported within the first quarter in contrast with what Wall Avenue anticipated, primarily based on common estimates compiled by LSEG:

• Loss per share: 15 cents adjusted vs. a lack of 57 cents anticipated
• Income: $12.54 billion vs. $12.45 billion anticipated

The airline expects to submit earnings of between $3.75 and $4.25 within the second quarter, forward of analysts’ estimates of about $3.76 a share. Airways make the majority of their earnings within the second and third quarters, throughout peak journey season.

The service additionally reiterated its full-year earnings forecast of between $9 and $11 a share.

United’s shares have been up greater than 4% in after-hours buying and selling on Tuesday.

United executives will maintain a name with analysts at 10:30 a.m. ET on Wednesday.