United Airlines stock rallies 10% on upbeat Q2 forecast
ALSO READ: US stocks: Dow Jones, S&P 500, Nasdaq surge led by megacaps Its revenue rose nearly 10 per cent, to $12.54 billion, beating the Wall Street forecast of $12.45 billion. For the second quarter, the airline expects an adjusted profit of $3.75 to $4.25 per share. United also maintained its full year profit outlook of $9 to $11 a share.
Chicago-based United Airlines has cut its annual delivery estimate for new Boeing aircraft by 25 per cent as the planemaker has been grappling with production and certification delays. United CEO Scott Kirby during an interview with CNBC on Wednesday said that he was “confident that the 787 Dreamliner is a safe airplane". The airline now intends to take just 61 new narrowbody planes this year, down from a prior plan of 101 jets and an original expectation of as many as 183 aircraft.
The change will cut United’s capital outlays by about $2.5 billion this year to $6.5 billion, the company said. United revamped its fleet plan “to better reflect the reality of what the manufacturers are able to deliver," chief executive officer Scott Kirby said in the statement. United Airlines also said it will convert some Max 10 orders to the smaller Max 9 variant.
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