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United Airlines forecasts first-quarter loss on higher costs



© Reuters. FILE PHOTO: A United Airlines Boeing 777-200ER plane is towed as an American Airlines Boeing 737 plane departs from O’Hare International Airport in Chicago, Illinois, U.S. Nov. 30, 2018. REUTERS/Kamil Krzaczynski

(Reuters) – United Airlines Holdings (NASDAQ:) Inc on Monday forecast a loss for the first quarter, compared with its earlier estimate for a profit, on account of higher costs and weaker-than-expected pricing power.

It now expects an adjusted diluted loss between $0.60 and $1.00 per share. The company in January forecast adjusted profit between $0.50 and $1.00 per share for the quarter.

Shares of the carrier were down 8% at $45 aftermarket.

The airline said it expects to benefit from a seasonality shift in the second quarter with current booked yield and revenue higher relative to 2019.

“As a result, the company’s outlook for the second quarter 2023 has improved, with total operating revenue now expected to be up in the mid-teens versus second quarter 2022,” the airline said in a filing.

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