by Donald Wood
Last updated: 11:00 AM ET, Wed April 17, 2024
As part of United
Airlines’ first-quarter financial results, the carrier revealed a pre-tax
loss of $164 million, a $92 million improvement over the same quarter last year.
According to Reuters.com,
the first-quarter results include a $200 million hit related to airplane
delivery delays from Boeing following a door plug being ripped off midflight in
January. The airline said it would have reported a quarterly profit without the
Boeing 737 MAX 9 grounding.
United also revealed it sustained an adjusted pre-tax loss
of $79 million, a $187 million improvement on an adjusted basis over the same
quarter in 2023. The company also generated a $2.8 billion operating cash flow
and a free cash flow of $1.5 billion.
“I want to thank the United team for working so hard this
quarter to deliver strong operational metrics for our customers and sharpen our
focus on safety, while producing excellent financial results for our
shareholders,” United Airlines CEO Scott Kirby said.
“We've adjusted our fleet plan to better reflect the reality
of what the manufacturers are able to deliver,” Kirby continued. “And, we'll
use those planes to capitalize on an opportunity that only United has:
profitably grow our mid-continent hubs and expand our highly profitable
international network from our best in the industry coastal hubs.”
One major factor impacting the remaining year’s expectations
is United being forced to cut its aircraft
delivery expectations. The airline now expects to take delivery of only 61 narrow-body
planes in 2024, down from the 101 it previously announced.
To compensate for the fewer aircraft, the carrier revealed
it would lease 35 Airbus A321neos in 2026 and 2027. United officials also revealed earlier this year that
it had removed the upcoming Boeing MAX 10 from its plans and converted some of
those orders to MAX 9 planes.
In the first quarter, the airline also achieved the second
best on-time departure for any first quarter in its history, as well as inaugurating
new service to Tulum, Mexico, from Houston and New York/Newark.
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