United Airlines is planning to reduce its domestic flights starting this summer in response to weak domestic travel demand, while experiencing strong bookings for international trips. The airline warned of a possible recession impacting profits this year but maintained its full-year earnings forecast. United plans to cut domestic capacity by approximately 4% in the third quarter, similar to rival Delta Air Lines’ slowing growth plans.
United CEO Scott Kirby stated that the airline will continue to follow its multiyear plan to remain successful in any demand environment. The company reported a profit of $387 million for the first quarter, surpassing Wall Street’s expectations. Domestic flight revenue fell while international route sales increased, contributing to a total revenue of $13.21 billion, slightly below analysts’ estimates.
Despite economic uncertainties, United’s future bookings have remained stable, with strong demand for premium-cabin and international travel. The airline expects adjusted earnings per share of $3.25 to $4.25 for the second quarter. The industry trend highlights the profitability of airlines like United and Delta, capitalizing on travelers willing to pay for premium services amid economic concerns.
Delta recently expressed uncertainty in reaffirming its full-year outlook due to market unpredictability. United’s strategic adjustments in response to fluctuating demand reflect its commitment to adapt to changing market conditions and maintain profitability despite challenges in the airline industry.
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