United Airlines reported a loss of $124 million in the first quarter due to the grounding of Boeing 737 Max 9s following an incident with an Alaska Airlines Max jetliner. Despite this setback, the airline remains optimistic about the future.
In response to receiving fewer new planes from Boeing than expected, United Airlines has started leasing Airbus jets to meet demand. The airline reported continued strength in air travel demand, particularly within the U.S. and across the Atlantic.
Despite a series of incidents, including a plane losing a piece of aluminum skin, a tire falling off during takeoff, and an engine fire, United Airlines CEO reassured travelers of safety. Shares of the airline rose 5% in after-hours trading following the financial results release.
The grounding of 79 Max 9 aircraft cost United $200 million, leading to a loss for the quarter. Boeing’s delays in production and delivery mean United now expects to receive 61 Max jets this year, significantly lower than previous expectations.
To bridge this gap, United will lease 35 Airbus jets in 2026 and 2027 instead of waiting for the delayed Max 10 model. The airline has also requested Max 9s in place of some Max 10s it ordered from Boeing.
Despite these challenges, United Airlines performed better than expected in the first quarter, with revenue rising nearly 10% to $12.54 billion. The airline forecast earnings of $3.75 to $4.25 per share in the second quarter, surpassing analyst predictions.
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