By Katherine Hamilton

United Airlines is scheduled to report first-quarter results after the market closes on Tuesday. Here is what you need to know.

REVENUE: The Chicago-based airline is expected to report $13.23 billion in sales, up from $12.54 billion in the previous first quarter, according to FactSet.

NET INCOME: United is expected to post a profit of $260.7 million, compared with a loss of $50 million the year before, according to FactSet. Analysts have lowered their profit estimates since February, when they were forecasting $343.2 million.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are anticipated to come in at 74 cents a share, up from a loss of 15 cents a share the prior year.

The stock has lost about a third of its value during the quarter, and recently traded around $64.74.

WHAT TO WATCH

--Air travel has been showing signs that consumers are getting more cautious about spending. Both leisure and business travelers are booking fewer trips amid government job cuts, recession worries and falling demand in key markets such as Canada.

--United said in March it expected first-quarter earnings to be at the lower end of its estimate due to a 50% drop in government travel bookings, which was rippling into leisure travel. It also retired 21 aircraft, but Chief Executive Scott Kirby said he wanted to hold off on further limiting capacity ahead of the summer travel season.

--But if United follows its peers, it could end up cutting supply more substantially. Delta Air Lines said in its earnings report last week it plans to reduce capacity growth in the second half of the year to be flat compared with the previous year. Budget airline Frontier also plans to cut capacity in the second quarter. Both companies declined to share a full-year outlook due to economic uncertainty.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

April 14, 2025 11:59 ET (15:59 GMT)

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