United Airlines Beats Q1 & Maintains Guidance, Shares Surge 12%

United Airlines (NASDAQ:UAL) reiterated its earnings forecast following the release of better-than-expected first-quarter results, despite incurring a $200 million impact due to the temporary grounding of Boeing 737 Max 9 jets over safety concerns. United Airlines saw its stock rise over 12% intra-day today after the announcement.

As the operator of the largest fleet of 737 Max 9 aircraft, United reiterated its full-year earnings projection of $9 to $11 per share. For the second quarter, the airline expects adjusted earnings per share to range from $3.75 to $4.25, compared to the analyst predictions of $3.76 per share.

For the quarter ending March 31, United reported an adjusted loss of $0.38 per share on revenues of $12.54 billion, surpassing analyst expectations of a $0.57 per share loss on revenues of $12.46 billion.

The grounding of the Boeing 737 Max 9 jets, triggered by a cabin panel blowout during a flight operated by Alaska Airlines earlier this year, resulted in a $200 million cost to the company. Excluding this expense, United would have posted a profit for the quarter.

The airline also noted a 0.6% increase in total revenue per available seat mile, a key metric, compared to the first quarter of the previous year, indicating improved revenue efficiency per seat.