United Airlines is expecting a first-quarter loss, it said in a securities and exchange filing on Monday.
Shares in the airline dropped this morning in pre-market trading after the news was released.
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“While all months of 2023 are expected to produce unit revenue significantly above the corresponding months in 2019, the Company is observing new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months,” United said in its filing, according to CNBC.
In addition to lower output in the preceding two months, United also accrued an unexpected expense when it renegotiated with its pilots sooner than expected.
United isn’t the only one dreading its first-quarter announcement, as Delta Air Lines expects a loss of at least $100 million in the first quarter.
Earlier this week, United announced it would invest $5 million of its UAV Sustainable Flight Fund to Viridos, a biofuel company using microalgae to produce sustainable aviation fuel (SAFs).
The sustainable aviation fuel would reduce greenhouse gas emissions during use; typically made from used cooking oil and agricultural waste, Viridos is using bioengineered algae to create it without relying upon other sources.
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