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The
forecast also lifted shares of rivals Delta Air Lines and
American Airlines by about 2.5% each, as they ride a wave of
strong international travel demand. Shares of domestic carrier
Southwest Airlines rose 3.2%.
United Airlines said on Monday it expects an adjusted profit of
$9 to $11 per share in 2024, with the midpoint well above
analysts' average expectation of $9.58.
The airline, however, expects an adjusted loss of 35 cents to 85
cents per share in the current quarter, assuming all its 79 MAX
9 planes remain grounded through the end of January.
Boeing's MAX 9 jets were grounded indefinitely by the Federal
Aviation Administration for safety checks after a cabin panel of
an Alaska Airlines plane blew off mid-flight on Jan. 5.
United Airlines on Monday also reported fourth-quarter adjusted
profit of $2 a share, topping Wall Street estimates of $1.70, on
strong holiday travel demand.
"The quarter's beat included good cost control and lower fuel
prices," Citi analyst Stephen Trent wrote in a note, while
reiterating a "buy" rating on the company's stock.
Shares of United were trading 4.04 times forward profit
estimates, compared with an industry median of 6.61.
"Overall demand for travel remains strong and is expected to
grow in the years ahead," Third Bridge senior analyst
Christopher Raite said.
While a full recovery of business travel is unlikely, airlines
such as United still have growth ahead in international markets
and healthy U.S. consumers, Raite added.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shinjini
Ganguli)
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