Shares of United Airlines Holdings Inc. rallied 10.39% in morning trading on Wednesday, after the airline reported first-quarter results and forecast a second-quarter profit that were above Wall Street's expectations, helped by strong demand and a rebound in business travel.
But United said it expects to bring fewer aircraft into its fleet this year, after the government grounded Boeing Co.'s 737 Max 9 jets and placed limits on their production. United, which predominantly flies Boeing $(BA)$ jets, said it has reworked its orders on other aircraft, and has agreements in place to lease a few dozen more jets from Boeing's archrival - Airbus (EADSY).
"We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," Chief Executive Scott Kirby said in United's earnings release.
Those adjustments would follow waves of travel disruptions to the airline industry since the pandemic, from the eruption of "revenge travel" to understaffing on flights to production issues at some of Boeing's suppliers. Fewer planes for passengers to fly on, coupled with continued demand, could push airfares higher.
United said it expected second-quarter earnings per share of $3.75 to $4.25. That was above FactSet forecasts for a per-share profit of $3.73. The company stuck with its full-year adjusted profit-per-share forecast of $9 to $11.
