United Airlines’ (UAL) unit revenue guidance of flat for Q1 will likely continue its unit revenue outperformance compared with the industry, BofA Securities said in a note to clients on Monday.
The firm said United’s outlook is better than its own forecast and the consensus of about minus 2% and also better than Delta Air Lines’ (DAL) guidance of flat to minus 3%.
United’s guidance assumes that the Boeing (BA) 737 Max 9 will be grounded through Jan. 31.
BofA also said that United’s Q4 EPS of $2 “nicely beat” the firm’s forecast of $1.58 and the Street’s $1.65.
BofA maintained United’s buy rating and $56 price objective.