(Boursier.com) — United Airlines, the American air carrier, fell more than 5% before the stock market on Wall Street. The group has indeed unveiled a disappointing guidance for the current quarter, reporting an unexpected loss due to the drop in demand. Thus, United is now expecting a first fiscal quarter loss, with increased salary and fuel costs and weakening demand. The company points to new seasonal demand patterns in January and February, with appetite for travel tending to subside, limiting the group’s ability to change fares. United still expects second-quarter revenue to be better than expected, and the group is sticking to its full-year profit forecast. Total revenue per available seat mile, an indicator of pricing power, is expected to rise 22% to 23% in the first quarter from a year earlier, slower than the 25% growth previously expected. The group expects an adjusted diluted loss per share of between $0.60 and $1 in the first quarter.
However, these same new demand patterns are expected to strengthen the second quarter, with peak months for travel. Operating revenues are expected to rise by around 15% year-on-year… Note also that the group’s competitor,, Delta Airlinesconfirmed its outlook for the first quarter.
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