Shares of British Airways’ owner International Consolidated Airlines Group SA (LSE:IAG) (IAG) have edged higher as mixed signals about the health of the airline industry came from across the Atlantic.
Shares of United Airlines Holdings Inc (NASDAQ:UAL) had fallen by 4.6% to US$46.54 by noon Eastern Time after the airline slashed its first quarter outlook and said it expects to post a loss for the quarter.
The airline forecast an adjusted loss per share of between US$0.60 and US$1, far above its previous forecast of earnings per share between US$0.50 and US$1. The Street’s expectation had been for a profit per share of US$0.63.
However, United reaffirmed its full-year outlook, saying it still expects to earn between US$10 and US$12 per share on an adjusted basis.
The Chicago-based carrier cited lower demand as well as higher costs from fuel and a potential contract deal as the reason behind its downward 1Q revision.
In the wake of United’s announcement Delta Air Lines (NYSE:DAL) Inc reaffirmed its first quarter outlook.
Delta CEO Ed Bastian told investors at JPMorgan’s investor conference that the airline has recorded its 10 highest sales days in its history during the past 30 days.
“If anyone’s looking for weakness, don’t look at Delta,” Bastian said.
Speaking at the same conference, American Airlines Group (NASDAQ:AAL) Inc CEO Robert Isom said the airline was experiencing “tremendous” demand.
Delta shares had added 1.4% at US$36.19 and American Airlines was up 0.8% at US$14.97 shortly after midday in New York. Meanwhile, British Airways parent IAG had added 1.6% at 144.92p in London on Tuesday afternoon.
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