Why United Airlines Shares Are Plunging Today

United Airlines Holdings Inc (NASDAQ:UAL) shares have been falling since the company filed 8-K with SECProviding an update on our 1Q23 guidance.
UAL reduced its adjusted EPS outlook to $(0.60)-$(1.00) prior guidance Adjusted pre-tax margin of (2%)-(4%) compared to the consensus estimate of $0.50-$1.00 vs $0.68, and compared to the prior ~3%.
It now sees capacity (vs 2022) at ~23% (previously ~20%) and expects total operating revenue to grow by ~51% (previously 50%).
Total Revenue Per Available Seat Mile (TRASM) 22%-23% ex ~25%. Flat -1% ex (3%) – (4%) of adjusted cost or operating expenses per available seat mile (CASM-ex).
UAL expects an average jet fuel price of $3.31-$3.41 per gallon, up from $3.19 earlier.
The company continues to expect adjusted pre-tax margin of ~9% in FY23 and adjusted EPS of $10 to $12 against the consensus estimate of $8.7.
United said it has decided it is appropriate to incur costs related to a possible new collective bargaining agreement with employees represented by the Air Line Pilots Association in the first quarter of 2023.
Price Action: Shares of UAL are trading down 2.89% on Tuesday at $47.42 premarket.