From CNBC:

United Airlines forecasts a first-quarter loss due to the FAA grounding of Boeing 737 Max 9 planes, after an incident on an Alaska Airlines flight. They expect to post an adjusted loss of between 35 cents and 85 cents a share. The grounding is expected to last through Jan. 26, causing hundreds of canceled flights.

United faces a mid-single-digit percentage point increase in unit costs for the first quarter due to the Max grounding, with no revenue growth expected. The airline has just reported net income of $600 million for the last three months of 2023, down 29% from a year ago.

Despite the upcoming financial loss, United Airlines CEO Scott Kirby stated that the airline is delivering on its ambitious EPS target and setting new operational records for customers. The airline also reported strong travel demand late last year and solid bookings for this year. United is still forecasting adjusted earnings of between $9 and $11 a share for 2024.

United Airlines executives will face questions about compensation from Boeing for the grounding in an earnings call on Tuesday. Alaska Airlines reports before the market opens on Thursday, and Boeing is scheduled to report results on Jan. 31.



Read more: United Airlines (UAL) Q4 2023 earnings