- United Airlines Holdings Inc (NASDAQ:UAL) updated its first-quarter 2022 guidance. All numbers are comparable to 1Q19.
- UAL now sees its Q1 capacity down ~19% compared to 1Q19, versus a prior expectation of down 16%-18%.
- It expects total operating revenue to be near the better end of its previous view of (20%) - (25%) decline versus 1Q19.
- United Airlines expects CASM-ex of ~18% versus the prior guidance of 14% - 15%. Fuel price/gallon is expected to be $2.99, compared to the previous expectation of ~$2.51 per gallon.
- For FY22, United Airlines expects capacity down higher single digits.
- Additionally, United Airlines noted business traffic is rebounding more quickly than expected; business booking versus 2019 improved by more than 30 bps since the peak of Omicron.
- United Airlines reported strong leisure demand across most networks, with the system bookings versus 2019 improving almost 40 bps since the first week of 2022.
- Cargo yields remain up over 100% over 2019.
- Price Action: UAL shares are trading higher by 9.88% at $38.48 on the last check on Tuesday.
