United Airlines forecasts first-quarter loss on higher costs

(Reuters) – United Airlines Holdings Inc on Monday forecast a loss for the first quarter, compared with its earlier estimate for a profit, on account of higher costs and weaker-than-expected pricing power.

It now expects an adjusted diluted loss between $0.60 and $1.00 per share. The company in January forecast adjusted profit between $0.50 and $1.00 per share for the quarter.

Shares of the carrier were down 8% at $45 aftermarket.

The airline said it expects to benefit from a seasonality shift in the second quarter with current booked yield and revenue higher relative to 2019.

“As a result, the companys outlook for the second quarter 2023 has improved, with total operating revenue now expected to be up in the mid-teens versus second quarter 2022,” the airline said in a filing.

(Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)