United Airlines (UAL) has announced its first-quarter (Q1) 2024 financial results, recording a pre-tax loss of US$164 million, marking a US$92 million improvement compared to the same quarter last year. Adjusted pre-tax loss stood at US$79 million, reflecting a US$187 million improvement on an adjusted basis from the previous year. These figures include a US$200 million impact from the Boeing 737 MAX 9 grounding, without which the company would have reported a quarterly profit. Operating cash flow for the quarter reached US$2.8 billion, with free cash flow totalling US$1.5 billion. United maintains its full-year 2024 adjusted diluted earnings per share guidance of US$9 to US$11.
United Airlines has adjusted its long-term fleet strategy to align with future airline needs and production timelines. This includes converting a portion of Boeing MAX 10 aircraft orders to Boeing MAX 9 from 2025 through 2027 while retaining the flexibility to convert more MAX 10 orders into MAX 8s or MAX 9s as required. Additionally, the company has secured letters of intent with two lessors to lease 35 new Airbus A321neos with CFM engines anticipated for delivery in 2026 and 2027.
Due to manufacturing and certification delays in previous years, United’s contractual aircraft commitments for 2024 had increased to 183 narrow-body aircraft by the end of 2023. However, the company now expects 61 narrow-body aircraft and five wide-body aircraft to be delivered in 2024, following the 737 MAX 9 grounding and significant production constraints announced by the FAA on Boeing. In the short term, United anticipates a small number of aircraft originally scheduled for service in the second quarter to be delayed until the third quarter, with minimal impact on capacity plans.
