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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