By Yasin Ebrahim
Investing.com - United Airlines Holdings (NASDAQ:UAL) reported on Wednesday fourth quarter results that beat analysts' forecasts, but its first-quarter guidance pointed to an omicron-fuelled hit to travel demand.
United Airlines Holdings shares lost 2.48% in after-hours trade following the report.
For Q1, capacity was expected to be down 16% to 18% year-on-year first quarter 2019 as previously planned capacity increases were delayed to later in this year "due to Omicron," the company said. Operating revenue was expected to fall between 20% and 25% versus first quarter 2019
United Airlines Holdings announced a loss per share of $1.60 on revenue of $8.19 billion. Analysts polled by Investing.com anticipated a per share loss of $2.06 on revenue of $7.99 billion.
Looking further ahead, capacity for the full-year 2022 was expected to to be down versus 2019.
"The airline starts 2022 with a scaled-back schedule, reflecting the impact of the Omicron spike on demand," the company said. However, as the year progresses, United expects to nimbly ramp up capacity by ungrounding 52 Pratt & Whitney-powered Boeing (NYSE:BA) 777s, as demand returns, which will yield improvements in the airline's gauge and aircraft utilization."
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