United Airlines is flying high, folks! Their shares soared a whopping 17% on Wednesday, hitting a sassy seven-month peak. Why? Because they’ve predicted second-quarter earnings that are so far above Wall Street’s estimates, it’s like they’re in a financial stratosphere, even with Boeing playing hard to get with those plane deliveries.
Now, United isn’t just throwing numbers in the air; they’re talking about raking in between $3.75 and $4.25 per share next quarter. Analysts were betting on about $3.76, so yeah, United’s got game. Turns out, the second and third quarters are like the summer blockbuster season for airlines. Who knew?
But wait, there’s more! United has trimmed its plane shopping list for the year from 101 down to a modest 61 narrow-bodies, adjusting their expectations to what the plane makers can actually deliver. It’s like expecting an all-you-can-eat buffet and then realizing it’s just a really great snack table. CEO Scott Kirby is all about using what they get to boost their mid-continent hubs and stretch their wings internationally from their top-tier coastal bases.
In a dramatic twist, United is flirting with Airbus, leasing 35 of their A321neos for 2026 and 2027. Meanwhile, Boeing is dealing with production caps and the FAA’s eagle eye. United even swapped some Boeing Max 10s for Max 9s, like trading in high heels for sneakers—practical but a tad less exciting.
And about that FAA safety review? It’s putting a speed bump in United’s plans, forcing them to delay some fancy new international routes. Despite this, Kirby reassured everyone that this hiccup won’t mess with their overall flight plans for the year.
In a plot twist, United had to push back their investor day from May because they’re knee-deep in a safety protocol pow-wow with the FAA. They didn’t want to throw a financial fiesta while that’s going on—it’d be like celebrating your birthday at a library study session.
To top it off, they’re pausing pilot hiring and offering some pilots a little unpaid vacation time in May. The quarter could have been profitable if not for a $200 million oopsie with the temporary grounding of the Boeing 737 Max 9.
But hold on, the story’s got a silver lining. Even after a $124 million loss this quarter, which is actually an improvement from last year’s $194 million loss, revenue is up nearly 10%. It’s like losing a fiver but finding a tenner in your other pocket.
There you have it: United Airlines, dodging turbulence with a grin and a bank account that’s starting to bulge. Even amidst whispers of safety concerns about the 787 Dreamliner, they’re keeping their heads in the clouds, financially speaking. And while airline stocks partied, Boeing’s stock took a slight dip before two Senate hearings about aerospace safety. So buckle up, it’s going to be an interesting flight with United at the controls!
