UNITED AIRLINES has been forced to cut its full-year profit forecast for the year due to the expo crash.
The airline, which is the fourth largest in the United States, said Thursday it has been in discussions with regulators over the crash and has a plan in place to minimize disruption to flights.
But it has warned that a “fiscal cliff” would force it to reduce its full year profit forecast to less than $1 billion.
The company said it was taking the “first steps” to avoid a fiscal cliff, and would be in the process of revising its fiscal 2017 revenue and profit forecasts to be more in line with earnings.
United Airlines has had its stock price plunge from around $200 per share to below $20 per share over the past few weeks, with many investors wondering whether the airline will survive the fiscal cliff.
But Chief Executive Officer Oscar Munoz said the company is “well positioned to be in business during the next two years.”
He said the airline’s focus is on reducing its debt and increasing profitability while maintaining the nation’s strongest competitive position.
The loss of the expos in the first quarter, which also included a restructuring of the airline, could be the biggest in U.S. history.
United said it expects to lose $7.7 billion in the fourth quarter of this year and that its fiscal year 2019 earnings will be less than the $4.2 billion forecast.
The airline’s stock price has also been on the decline since the financial crisis, with the stock plunging by nearly a third in 2016.