United Airlines expects to lose money in the first quarter due to the grounding of Boeing Max 9 jets
United Airlines is warning that it will lose money in the first three months of the year partly because of the grounding of its Boeing Max 9 airplanes
United Airlines said Monday it will lose money in the first three months of this year as it deals with the grounding of its Boeing 737 Max 9 planes after a panel blew out of a Max jetliner this month.
United said it expects to lose between 35 cents and 85 cents per share in the first quarter.
The airline said, however, that it will recover to earn a full-year profit between $9 and $11 per share. Analysts were expecting $9.48 per share, according to FactSet.
The Chicago-based airline based its forecasts on an assumption that the Max 9s will be grounded through the month of January, but not longer. Federal regulators have refused to put a timeline on letting the planes fly again, saying it will happen only when they believe the planes are safe.
United reported that despite higher revenue fourth-quarter profit fell 29%, to $600 million. The results were dragged down by a 28% increase in labor costs, partly reflecting a new union contract with pilots.
United and Alaska Airlines have canceled hundreds of flights since the Federal Aviation Administration grounded their Max 9 jets after a panel called a door plug blew off the side of an Alaska plane 16,000 feet (4,900 meters) above Oregon on Jan. 5. Investigators with the National Transportation Safety Board said they were examining whether bolts on the panel were missing or broke off.
United has 79 Max 9s in its fleet, which numbers around 1,000 planes, not counting those used by regional affiliates.
Concern about door plugs on Boeing planes widened Monday, when the FAA recommended that airlines inspect the same panel on Boeing
Read more on abcnews.go.com
