United Airlines Eyes Better End Of Q1 Revenue Outlook As Business Traffic Rebounds

  • United Airlines Holdings Inc UAL updated its first-quarter 2022 guidance. All numbers are comparable to 1Q19.
  • UAL now sees its Q1 capacity down ~19% compared to 1Q19, versus a prior expectation of down 16%-18%.
  • It expects total operating revenue to be near the better end of its previous view of (20%) - (25%) decline versus 1Q19.
  • United Airlines expects CASM-ex of ~18% versus the prior guidance of 14% - 15%. Fuel price/gallon is expected to be $2.99, compared to the previous expectation of ~$2.51 per gallon.
  • For FY22, United Airlines expects capacity down higher single digits.
  • Additionally, United Airlines noted business traffic is rebounding more quickly than expected; business booking versus 2019 improved by more than 30 bps since the peak of Omicron.
  • United Airlines reported strong leisure demand across most networks, with the system bookings versus 2019 improving almost 40 bps since the first week of 2022.
  • Cargo yields remain up over 100% over 2019.
  • Price Action: UAL shares are trading higher by 9.88% at $38.48 on the last check on Tuesday.
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