Despite Losses, United Airlines Says Its Benefiting From Surging Demand

Despite high fuel prices, the airline says demand for travel is strong, as evidenced by strong March numbers.

Michael Wildes

Thursday, April 21, 2022 at 04:09 PM ET

Verified

United expects to add more than 2,000 new pilots in 2022. [Courtesy: United Airlines]

Key Takeaways:

United Airlines anticipates a return to profitability starting in Q2 2022 and expects a full-year profit for the first time since the pandemic began, driven by record-high demand and increased fares.
The company's optimistic outlook is bolstered by the re-addition of 52 grounded Boeing 777 aircraft by summer, providing much-needed capacity alongside a strong return in profitable business travel.
To address a worsening pilot shortage impacting regional operations, United is significantly expanding its Aviate Academy, aiming to train 5,000 new pilots by 2030 with a commitment to diversity.

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While United Airlines (NASDAQ: UAL) reported a $1.4 billion loss in the first quarter on revenue of $7.6 billion, the company said it expects to be profitable from the second quarter onward because of surging air travel demand.

Furthermore, it projects its second-quarter revenue to be the strongest quarterly revenue in company history, with revenue per passenger mile up 17 percent over 2019. This is partly the result of higher fares that customers have faced because of inflation and surging fuel prices. The company paid $2.88 a gallon for fuel in the first quarter compared to $1.74 last year—wherein travelers made up the deficit.