United Airlines loss bigger than feared on higher fuel costs, capacity slide

United Airlines said it expects fuel costs to rise by another 5% in the second quarter.

NEW YORK: United Airlines on Monday reported a bigger-than-expected $2.4 billion adjusted net loss for the first quarter, as fuel costs rose and the airline operated fewer flights amid continued weak demand due to the COVID-19 pandemic.

Average fuel cost climbed nearly 30% to $1.74 per gallon in the quarter from the previous three months, while passenger traffic fell 52% compared to the same period in 2020. The World Health Organization did not declare COVID-19 a pandemic until near the end of the first quarter in 2020.