United expects stronger quarterly earnings; cuts aircraft delivery estimates

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United Airlines Holdings on Tuesday forecast stronger-than-expected earnings in the current quarter, after reporting a narrower-than-expected loss in the first quarter, on robust demand for travel.

A United Airlines passenger jet lands at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. REUTERS/Chris Helgren/File Photoon Tuesday forecast stronger-than-expected earnings in the current quarter, after reporting a narrower-than-expected loss in the first quarter, on robust demand for travel., has been hit by the planemaker's safety crisis. Boeing's troubles forced it to scale down its total aircraft delivery estimates for this year by 25% to 66 jets.

The airline had to ground its Boeing 737 MAX 9 fleet following a January mid-air cabin panel blowout on an Alaska Airlines United said it has converted a portion of MAX 10 aircraft orders into MAX 9 for deliveries from 2025 through 2027. It has also retained the right to convert more MAX 10 orders into MAX 8 or MAX 9 as needed.

In the short run, a small number of jets that were previously scheduled to enter service in the June quarter would be pushed into the third quarter. The change, however, is expected to have minimal impact on its capacity plans, it said.

 

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