United Airlines stock jumps after passenger revenue, capacity outlook raised

Shares of United Airlines Holdings Inc. jumped 4.7% in premarket trading Tuesday, after the air carrier raised its passenger revenue outlook, citing an improving demand environment. United disclosed late Monday in a filing with the Securities and Exchange Commission that it now expects second-quarter total revenue per available seat mile (TRASM) to be up 23% to 25% from the same period in pre-pandemic 2019, compared with previous guidance of a rise of about 17%. The company also raised its capacity outlook to approximately 14% from about 13%. United also lifted its growth estimate for cost per available seat mile (CASM) to 16% to 17% from about 16%, as the outlook for average aircraft fuel price per gallon increased to $4.02 from $3.43. "In the period following the Company's previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022," the company said in a statement. The stock has slipped 0.6% year to date through Monday, while the U.S. Global Jets ETF has declined 9.4% and the S&P 500 has dropped 15.9%.

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