United AirlinesThe company expects to make a profit by 2022, the first since the pandemic. This is due to the rise in airfares and bookings.

After the release of results, United shares surged more than 4 percent in trading after hours Wednesday.

United’s first-quarter revenue came in at $7.57 billion, well off the $9.59 billion it reported three years earlier but more than double the $3.22 billion from a year ago.

After accounting for the one-time items it had, its share price fell by $4.24. In the first quarter of 2019, fuel costs were $2.88 per gallon, up from $1.74 in 2018 and $2.05 in 2019. The company’s fuel costs increased 18% in the first quarter of 2019, excluding gasoline.

For the second quarter, United is forecasting a 10% operating margin, and costs, excluding fuel, up 16% and revenue per passenger mile up 17%, with higher fares helping cover increase in expenses.

Chicago-based Airline is the second U.S. major carrier to announce results and give an outlook for peak season travel, when airlines make the majority of their revenue. Delta Air LinesIt reiterated last week that the firm foresees profitability in 2012.

Based on Refinitiv’s average estimates, here is how United did in the first quarter.

• Adjusted earnings per share: a loss of $4.24 versus an expected loss of $4.22

• Total revenue: $7.57 billion versus expected $7.68 billion.

United has a challenge adding capacity, despite high demand. It has 52 Pratt & Whitney-powered BoeingThe planes that are the largest in the fleet of 777s have been grounded after an engine malfunction in February 2021. It won’t be back until May at the latest. CNBC reportedI did so earlier in the month. Due to manufacturing defects, deliveries of new Boeing 787 Dreamliners were stopped for most of the 18-months.

A pilot shortage is also a concern for the airline, especially at regional carriers, which feed its hubs. This problem affects all sectors.

After the Covid cases reached their peak, airline bookings rose and subsided in this winter. This helped to ease the difficult start to 2022. Executives at airlines expect that many of the travelers who have been cooped up for more than two decades will still be able to drive travel demand even with rising fares, even after the pandemic.

United plans to fly 87% of its 2019 schedule during the second quarter. United is more conservative than rivals in adding capacity, including Delta. American AirlinesBudget airlines are growing quickly like Spirit Airlines.

Spirit Airlines, Alaska Airlines, and others are also carriers. JetBlue AirwaysThese are trimming spring and summer schedulesThere is still some room for maneuvering around disruptions, such as severe weather or staff shortages.

Robert Isom is American Airlines’s new CEO. He stated to his staff last week that the company will be focusing on reliability this season. After carriers failed to manage routine disruptions or staff shortages, customers on American Airlines and other airlines faced huge cancellations and deals last year.

United executives will meet with journalists and analysts to discuss the results. ET on Thursday. American Airlines will release its results Thursday before the market opens and host a conference call at 8:30 AM. ET.

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