By Rajesh Kumar Singh

CHICAGO (Reuters) -United Airways Holdings Inc on Tuesday forecast a revenue for the second quarter and retained its earnings outlook for the complete 12 months on “robust” journey demand, notably for worldwide journeys.

In a press release, CEO Scott Kirby (NYSE:) stated bookings for worldwide journey are rising at twice the home fee.

The Chicago-based provider’s earnings got here days after rival Delta Air Strains (NYSE:) performed down dangers of a slowdown in journey spending, citing document bookings.

United stated it expects an adjusted revenue of $3.50-$4 a share within the second quarter, with a 14%-16% year-on-year leap in income. The earnings forecast compares with analysts’ estimates of $3.65 a share, in line with a Refinitiv survey.

The corporate additionally reiterated its forecast for a four-fold leap in revenue this 12 months.

Its shares have been up about 2% in prolonged buying and selling.

Airways are having fun with sturdy shopper demand regardless of rising dangers of an financial recession. This has allowed them to mitigate rising labor and gasoline payments with larger ticket costs.

Some analysts should not positive the journey growth will final for lengthy.

United final month spooked traders with a revenue warning, stoking worries in regards to the business’s pricing energy. These issues have been amplified final week when American Airways (NASDAQ:) Group Inc’s revised earnings forecast fell in need of Wall Road estimates.

A producing downside with Boeing (NYSE:) Co’s 737 MAX jets has additionally solid a shadow on U.S. carriers’ plans so as to add extra flights to capitalize on a busy summer season journey season.

United didn’t touch upon the potential impression of MAX’s delays in its earnings report. It reiterated its plans to extend capability this 12 months.

It is likely one of the most uncovered carriers to Boeing’s supply delays. The airline has but to obtain practically three-fourths of its MAX jet order this 12 months.

“The aggressive earnings forecast has been premised on additions of latest plane to the corporate’s fleet,” stated Peter McNally, an analyst at analysis agency Third Bridge. “That is totally depending on Boeing 737s.”

United’s adjusted loss for the quarter by way of January got here in at 63 cents a share, decrease than the lack of 73 cents that analysts had anticipated, in line with Refinitiv information.

The corporate will focus on the outcomes on a name with analysts and traders on Wednesday morning.