HomeFinancial MarketsUnited Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections...

United Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections for Q2

Following a strong first-quarter earnings report, United Airlines saw its stock jump 14% on Wednesday. Investors were also intrigued by the company’s optimistic projections for Q2.

United Airlines reported a pre-tax loss of $164 million as well as an adjusted loss of 15 cents per share, which was a lot better compared to the predictions of analysts, who expected 54 cents per share. The company believes the first quarter would be profitable if it weren’t for the $200 million impact that was caused by the grounding of Boeing 737 MAX 9 after Alaska Airlines experienced an incident with the same model.

The airliner also surpassed the expectations of analysts with $12.5 billion in operating revenue, which represents a 9.7% increase compared to the same period last year. The projections were that United Airlines will have $12.45 billion in revenue for the period.

United Airlines now projects a profit of $3.75 to $4.25 per share for the Q2 compared to Wall Street expectations of $3.76 profit per share.

After closing at $41.50 per share on Tuesday, the United Airlines stock rallied in after-market trading. It opened at $44.39 per share on Wednesday and continued its climb to $47.60 at one point. This is the highest the company’s shares have been in April.

Chemical Giant DuPont Will Split in 3 Companies, Replace CEO Ed Breen

Chemical giant DuPont is heading towards some major changes. The company announced on Wednesday that it will be splitting into three separate companies while...

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications...

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of...