United Airlines Holdings Inc. said Tuesday it expects first-quarter total operating revenue to be near the better end of previous guidance of down between 20% and 25%, compared to the first quarter 2019. “In the period following the peak in COVID-19 case counts associated with the omicron variant in January, demand for travel has exceeded the company’s previous expectations,” UAL said. As a result of the omicron variant and flight cancellations associated with current geopolitical conditions, United Airlines now forecasts first-quarter capacity to be down about 19% from the first quarter of 2019, and below its previous guidance of down between 16% and 18%. As a result of this decrease in capacity, UAL now expects first- quarter cost per available seat mile to increase approximately 18% versus first quarter 2019, above its previous guidance of an increase of between 14% and 15%. Citing a “strong revenue environment” and based on a projected average fuel price per gallon of approximately $3.50, the airline operator continues to expect positive adjusted pre-tax income in the second quarter. Shares of UAL rose 0.9% in premarket trades.
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