Skift Take
United reported a strong first quarter, even as it faces an FAA safety review, Boeing delivery delays and rising tensions in the Middle East.
From Boeing delivery delays and increased Federal Aviation Administration oversight to escalations in the Middle East, it would seem like United Airlines might be in hot water.
But United executives don’t seem worried. The carrier had a strong first quarter — it reported a pre-tax loss of $164 million but that was primarily due to the 737 Max 9 grounding.
“Without the grounding of the Max 9, we clearly would have produced a profit in the quarter,” said Andrew Nocella, United’s chief commercial officer, during a call with analysts on Wednesday.
The carrier saw corporate travel bounce back with a 14% increase during the first quarter and revenues from United MileagePlus were up 15%. Nocella said United also saw a rebound in London, where revenues for Polaris, its business class product, were up 8%, despite 11% less capacity to the city.
And United’s strategy to woo premium and budget travelers seems