United Airlines soars on upgrades despite Boeing-related hit
Over the past six months United Airlines (UAL:NASDAQ) shares have gained over 45% as the US airline managed to shrug off negative news concerning delayed deliveries and canceled flights related to safety issues at aircraft maker Boeing (BA:NYSE).
On the day of its first quarter results (16 April) United Airlines shares gained nearly 20% at one point hitting the $50 mark as the US airline upgraded guidance. This took the limelight rather than the $200 million hit from the grounding of Boeing planes after a cabin panel below out on a flight operated by rival Alaska Airlines.
The company forecast earning between $3.75 to $4.25 per share in the second quarter, ahead of Wall Street estimates of approximately $3.76 per share.
United has also reiterated its full year earnings forecast of between $9 and $11 per share. The company is seeing robust demand for domestic and transatlantic flights and a notable uptick in business travel.
United said it will receive just 61 new narrow-body planes, down from 101 it said it had expected at the beginning of the year.
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