From Dow Jones & Company:

United Airlines Holdings Inc. expects to lose more money in the first quarter due to the grounding of dozens of Boeing 737 Max 9 jets. However, the airline forecasts a full-year profit that is better than expected. United’s fourth-quarter results jumped and beat expectations due to premium-cabin offerings and cheaper basic economy fares.

During the first quarter, the airline anticipates a loss of 35 to 85 cents per share, worse than expected. The grounding of its 79 Max 9 jets will increase costs. The Federal Aviation Administration grounded 171 Max 9 jets after an emergency landing with no severe injuries reported.
United’s full-year earnings projection of $9 to $11 per share is above expectations.
Shares surged 5.4% after hours and the airline’s conference call is scheduled for Tuesday.

United is expected to continue last year’s trends, but the airline is facing a dramatic year in the industry. Some analysts are concerned airlines have too many flights and too little demand coupled with higher costs after two years of “revenge” travel. The fate of the Max 9 still remains unknown, and rival airlines are dealing with their own issues, including a blocked merger deal and FAA inspections for a second Boeing aircraft model.
United’s fourth-quarter net income was $600 million and revenue rose 9.9% to $13.63 billion. Despite the challenges, the airline’s diversified revenue strategy has been a competitive advantage. BofA analysts recently upgraded shares of United to a buy rating.



Read more: United sees bigger-than-expected first-quarter loss after 737 Max groundings — but here’s why the stock is rallying anyway