United Airlines Expects To Return To Profit In Q2, Shares Up 8%

(RTTNews) - While reporting its results for the first quarter on Wednesday, United Airlines (UAL) said it expects to return to profitability in the second quarter on a robust operating revenue outlook, including total revenue per available seat mile (TRASM) of about 17% over 2019. Sending shares of the company up 8 in extended trading sessions.

The company expects to be solidly profitable in the second quarter with an approximate 10% operating margin, just 2.9 points less than 2019 operating margin and 3.5 points less than 2019 adjusted operating margin, despite cost headwinds driven by the recent fuel price spike.

United Airlines CEO Scott Kirby said, "The demand environment is the strongest it's been in my 30 years in the industry - and United and its customers will benefit more than any other airline. We're now seeing clear evidence that the second quarter will be an historic inflection point for our business. It leaves me more optimistic than ever about United's future."

UAL closed Wednesday's trading at $46.52, up $0.57 or 1.24%, on the NYSE. The stock further gained $3.68 or 7.91% in the after-hours trading.