United Airlines Reports Quarterly Loss but Says Demand Is Strong for Travel Abroad

The airline said it expects earnings of $3.50 to $4 a share in the second quarter, a time of year when vacations pick up and travel demand typically accelerates.  

The airline on Tuesday reported a net loss of $194 million for the first quarter. On an adjusted basis, its loss of $207 million, or 63 cents a share, was narrower than the 73 cent-a-share loss analysts were anticipating, according to FactSet. 

United shares climbed 1.4% in after-hours trading. 

Airline executives have said that a combination of high demand, limits on the number of flights they can add due to an industrywide shortage of pilots, and delayed aircraft deliveries are together helping to keep ticket prices higher. 

Investors have become worried that the travel rebound could run out of steam if banking industry turmoil, inflation and spreading layoffs affect consumers’ willingness to continue buying expensive tickets. American consumers cut retail spending for the second straight month in March in the latest sign of a slowing economy. 

So far, airlines say they haven’t seen any signs that travel has been affected. Last week, rival Inc. also predicted that appetite for travel will remain resilient. Airline executives expect U.S. travelers to flock to European destinations in even greater numbers than last year and have said huge numbers of people have already booked their summer trips. 

United rattled investors last month when it lowered its earnings guidance for the first quarter. The airline said at the time that January and early February were weaker than it expected but that spring months looked stronger. The airline also cited higher costs of fuel and the effect of a potential contract deal with pilots. 

United said its unit costs rose 4% during the first quarter, though costs per available seat mile fell 0.1% excluding fuel. 

Write to Alison Sider at [email protected]