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

United Airlines on Monday reported a bigger-than-expected loss for the first quarter, as fuel costs rose and seat capacity slumped as carriers remained under stress from weak demand due to the COVID-19 pandemic.

Average fuel cost climbed nearly 30 per cent to $1.74 per gallon in the quarter from the previous three months, while seat capacity fell 54 per cent compared to the same period in 2019. United said it expects fuel costs to rise by another 5 per cent in the second quarter.