42 United Airlines (UAL.O) saw a significant surge in its shares by 14% on Wednesday, driven by an optimistic profit outlook for the second quarter and robust first-quarter results despite facing a $200 million impact due to Boeing’s safety crisis. This marked United’s best session in over 3-1/2 years, with rivals Delta Air Lines (DAL.N) and American Airlines (AAL.O) also experiencing gains of approximately 2% and 4%, respectively. Analyst Peter McNally from Third Bridge noted that United’s first-quarter results exceeded significantly lowered expectations following the grounding of Boeing’s 737 MAX-9 in January. CEO Scott Kirby expressed confidence in strong summer travel demand across the network, anticipating another record for passenger numbers as customers prioritize spending on experiences over goods. Despite being a key customer of Boeing, United reduced its annual delivery estimate for new aircraft by 25% due to production and certification delays at the planemaker. These delays have affected United’s aircraft utilization, resulting in overstaffing and cost impacts. CFO Michael Leskinen stated the company’s efforts to mitigate these costs while navigating through the challenges posed by flying fewer aircraft than planned for the year. For the current quarter, United expects an adjusted profit of $3.75 to $4.25 per share, slightly surpassing analysts’ average expectations. Leskinen emphasized the strong current results and the promising outlook for the future. Analyst Stephen Trent from Citi noted that these results and guidance could alleviate some concerns surrounding United’s shares, which were considered oversold. You Might Be Interested In Coffee is Kaffi Chinese tourists get VIP treatment as Thailand waives visa Amber Group raises $300 million in Series C funding amid cryptocurrency market turmoil Blocknative to revolutionize blockchain management with $15 million in funding Huntington Expands Commercial Banking Team with Focus on Specialized Cash and Treasury Management Solutions for Real Estate Businesses Somalia Declines Mediation with Ethiopian Government Regarding Somaliland Port Deal