April 17 Reuters United Airlines shares rose 10 in morning trade on Wednesday, driven by an upbeat profit forecast for the second quarter and strong firstquarter results despite a 200 million hit over planemaker Boeing39;s safety crisis.
The carrier39;s foreca st signaled strength in travel demand as corporate spending improved, lifting shares of rival Delta Air Lines and American Airlines by about 3 and 4, respectively.
United delivered Q1 results that cleared dramatically lowered expectations in the wake of the Boeing 737 MAX9 grounding in January, Third Bridge analyst Peter McNally said in a note.
United, a prominent customer of Boeing, cut its annual delivery estimate for new aircraft by 25 as the planemaker has been grappling with production and certification delays.
Aircraft shortages have constrained capacity for major airlines, hindering their efforts to cashin on booming demand.
United CEO Scott Kirby during an interview with CNBC on Wednesday said he was confident that the 787 Dreamliner is a safe airplane, commenting on an investigation by the U.S. aviation regulator on a Boeing whistleblower39;s claims that the company dismissed safety and quality concerns in the production of its 787 and 777 jets.
The planemaker39;s manufacturing practices will come under scrutiny in two Senate hearings on Wednesday, one of which is expected to feature testimony and documents from the whistleblower.
In the current quarter, United expects an adjusted profit of 3.75 to…