By Yasin Ebrahim
Investing.com - United Airlines Holdings (NASDAQ:UAL) reported Tuesday first-quarter results that missed on both the top and bottom lines, but said it expected to return to profit this year as business travel activity appears to be on the up and up.
United Airlines shares were up more than 5% in after-hours trading.
United Airlines Holdings announced a loss per share of $4.24 on revenue of $7.57 billion. Analysts polled by Investing.com anticipated a loss of $4.14 a share on revenue of $7.6 billion.
First quarter cost per available seat mile, or CASM was up 21% compared with the first quarter 2019.
Looking ahead, the airline said it expects to be profitable in fiscal 2022, and touted the return of business travel, a crucial driver of growth. "The company is also seeing indications that business travel is rapidly returning and expects further improvement in international travel, including Asia."
For the second quarter, the airline forecasts total revenue per available seat mile to rise by 17%, with operating margin growth of 10%. That is about 2.9% less than 2019 operating margin and 3.5% less than 2019 adjusted operating margin, despite "cost headwinds driven by the recent fuel price spike," United Airlines said.