Even Boeing can’t keep United Airlines down. The airline reported strong travel demand and a rebound in business travel during its first quarter earnings report on Tuesday, sending its stock up in after-hours trading despite a big loss stemming from its Boeing planes getting grounded.
United reported a loss of $124 million. It said it would have turned a profit had it not been for the grounding of the Boeing 737 MAX 9 jets in January. Those groundings cost United Airlines about $200 million, the company said. The airliners were grounded by the Federal Aviation Administration after a door plug blew out on an Alaska Airlines flight.
But United Airlines still modestly beat Wall Street’s earnings expectations. For the period, the company posted revenue of $12.54 billion. Analysts had forecast revenue of $12.43 billion.
United Airlines stock rose 5.3% in after-hours trading.
United expects to make a substantial portion of its profits during the second quarter, at the height of summer travel season. It expects earnings per share of between $3.75 and $4.25 during the second quarter. And the company expects full-year adjusted earnings per share to be in the range of $9 to $11.
United Airlines CEO Scott Kirby said that even with robust travel demand, the company is adjusting its fleet plans “to better reflect the reality of what manufacturers are able to deliver.”
Following the 737 MAX 9 groundings and Boeing’s ongoing production troubles and regulator scrutiny, United said it expects to receive 61 new narrow body jets this year. It had previously planned to receive 101 of the planes.
The company reports earnings at a time when the travel industry has been muddled with numerous safety mishaps, including canceled flights, fecal fiascos, and pilots being asked to take unpaid leave.