A United Airlines Boeing 737 MAX 9 landed at San Francisco International Airport.
Justin Sullivan | Getty Images
United Airlines On Tuesday, it lowered its forecast for aircraft deliveries for this year as it faces delays Boeingthe latest airline to face growth challenges due to a manufacturer safety crisis.
United expects to take delivery of just 61 new narrowbody aircraft this year, down from the 101 it said it expected at the beginning of the year and contracts for up to 183 aircraft in 2024.
“We have adjusted our fleet plan to better reflect the reality of what manufacturers are able to offer,” CEO Scott Kirby said in an earnings release. “And we will use these aircraft to capitalize on an opportunity that only United has: profitably grow our midcontinent hubs and expand our highly profitable international network from our best coastal hubs in the industry.”
United said it plans to lease 35 Airbus A321neos in 2026 and 2027, turning to Boeing's rival for new planes as the U.S. manufacturer faces curbs on its production and increased federal scrutiny. In January, United said it would withdraw the not-yet-certified Boeing Max 10 from its fleet plan. The airline said it had converted some Max 10 planes into Max 9 planes.
It lowered its annual capital expenditure estimate to $6.5 billion from about $9 billion.
United also faces a safety review from the Federal Aviation Administration, which has prevented some planned growth. A company spokeswoman told CNBC earlier this month that the carrier would have to postpone its planned service from Newark, New Jersey, to Faro, Portugal, and service between Tokyo and Cebu, Philippines.
United earlier this month postponed its investor day, which had been scheduled for May, “because our entire team is focused on collaborating with the FAA to review our safety protocols, and that would simply send the wrong message to our team to have a day.” An exciting investor who focuses primarily on financial results.”
The airline said it would have reported earnings for the quarter had it not been for a $200 million loss from the temporary grounding of the Boeing 737 MAX 9 in January.
The Federal Aviation Administration temporarily grounded those planes after a door plug exploded minutes later Alaska Airlines The flight, sparking a new safety crisis for Boeing and slowing deliveries of its planes to customers including United, Southwest And others.
The airline reported a net loss of $124 million, or a loss of 38 cents per share, in the first quarter compared to a loss of $194 million a year earlier, or 59 cents per share. Revenue rose nearly 10% in the first quarter year-over-year to $12.54 billion, with capacity increasing more than 9% year over year.
Here's what United reported in the first quarter compared to what Wall Street expected, based on average estimates compiled by LSEG:
Loss per share: 15 cents adjusted vs. expected loss of 57 cents Revenue: $12.54 billion vs. $12.45 billion expected
The airline expects to report earnings between $3.75 and $4.25 in the second quarter, beating analysts' estimates of about $3.76 per share. Airlines make the bulk of their profits in the second and third quarters, during the peak travel season.
The carrier also reiterated its full-year earnings forecast of $9 to $11 per share.
United shares rose more than 4% in after-hours trading Tuesday.
United executives will hold a conference call with analysts at 10:30 a.m. ET on Wednesday.
