04:58 PM EDT, 04/16/2024 (MT Newswires) -- United Airlines (UAL) late Tuesday reported a smaller-than-expected first-quarter loss despite a $200 million hit from the temporary grounding of the Boeing ( BA ) 737 Max 9, while the airline updated its long-term fleet strategy to smooth out its aircraft delivery schedule.

The company's adjusted per-share loss narrowed to $0.15 during the three months ended March 31 from $0.63 a year earlier. The Capital IQ-polled consensus called for a $0.57 loss per share. Operating revenue climbed 9.7% to $12.54 billion, ahead of analysts' $12.39 billion estimate. The stock was rising 5.2% in after-hours trade.

"The demand environment remained strong with a double-digit percentage increase in business demand quarter over quarter, as compared to pre-pandemic," United Airlines said in a statement. "Additionally, the company was able to take advantage of a number of opportunities to adjust domestic capacity which drove meaningful improvements in first-quarter profitability."

The company said it would have reported a quarterly profit without the $200 million impact from the Boeing 737 Max 9 grounding. In January, the US Federal Aviation Administration temporarily grounded Max 9 planes after an aircraft operated by Alaska Air ( ALK ) suffered a mid-air panel blowout.

Passenger revenue added about 10% year-over-year to $11.31 billion, while cargo reported a 1.8% decline. Total revenue per available seat mile, or TRASM, which is used to compare the efficiency of various airlines, was up 0.6% from the 2023 quarter.

United Airlines said it updated its fleet plan to allow for "a more consistent delivery schedule" of approximately 100 narrow-body aircraft per year from 2025 to 2027.

At the beginning of 2024, United Airlines expected 101 narrow-body aircraft deliveries in 2024. "Following the 737 Max 9 grounding and the FAA's announced significant production capacity constraints on Boeing ( BA ), the company now anticipates 61 narrow-body aircraft and 5 wide-body aircraft to be delivered in 2024," the airline said.

United Airlines said that two lessors plan to lease 35 new Airbus A321neos to the airline in 2026 and 2027. United now expects "a small number of aircraft" to enter into service in the third quarter, rather than the second, though the move is expected to have a "minimal impact" on the company's capacity plans, according to a statement.

"We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," United Airlines Chief Executive Scott Kirby said.

United Airlines anticipates reporting adjusted earnings of $3.75 to $4.25 per share for the second quarter, according to an investor update. The Street's view is for EPS of $3.71. United maintained its full-year EPS outlook at $9 to $11, versus market expectations for $9.41.