CHICAGO (AP) – United Airlines said on Monday it will lose up to USD1 a share in the first quarter after accounting for some of the cost of a potential new contract with pilots.
Wall Street was expecting United to post a first-quarter profit on the back of strong travel demand, and United shares fell six per cent in after-hours trading. United is still negotiating with its pilots, who are eager to match a recently ratified contract that will give Delta pilots cumulative raises averaging 34 per cent over four years.
United said in a regulatory filing that it will book the expense for a new agreement in the first quarter instead of the second quarter.
The airline now expects to lose between 60 cents and USD1 per share. Analysts surveyed by FactSet had been predicting a profit of 60 cents per share.
United forecast earnings of 50 cents to USD1 per share in January.