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United Airlines (UAL) has suffered recently from a shortage of qualified pilots.
Now the company says it is expecting a loss in the first quarter of 2023.
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In a filing with the Securities and Exchange Commission, the company said it is anticipating an adjusted diluted loss per share of between 60 cents and $1 in the first quarter.
That estimate was lower than a previous projected loss of 50 cents to $1 per share.
United's stock dropped in after hours trading by about 6%.
"The Company has determined that it is appropriate to accrue expense in the first quarter 2023 related to a potential new collective bargaining agreement with employees represented by the Air Line Pilots Association," the filing said.
The airline's statement said it expected unit revenue to be higher than in the corresponding months in 2019. Lower demand months such as January and February grew less in 2013 than it anticipates for higher demand months.
United said it expects total revenue per available seat mile in the first quarter of 2013 to increase between 22% to 23% compared to the same period in 2022.
That is below earlier guidance suggesting a gain of 25%.
The carrier said the second quarter is expected to benefit from the seasonality shift.
"Current booked yield and revenue (is expected to be) substantially higher relative to those in 2019 at this point in time," the filing said. "As a result, the Company's outlook for the second quarter 2023 has improved, with total operating revenue now expected to be up in the mid-teens versus second quarter 2022."
United also said it was expecting guidance on fuel costs in the first quarter to be $3.31 to $3.41 per gallon. That would be higher than an earlier estimate of $3.19 per gallon.
"The company continues to expect a full year 2023 adjusted pre-tax margin of approximately 9% and full year adjusted diluted earnings per share of $10 to $12," United said.