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2mo ago

United Airlines Adjusts Strategy with Dual Earnings Forecasts and Domestic Flight Cuts

The airline reports a Q1 profit of $387 million, plans a 4% domestic capacity reduction, and offers two full-year earnings scenarios reflecting economic uncertainty.

United Airlines planes land and prepare to take off at Newark Liberty International Airport in Newark, New Jersey, , U.S., January 27, 2025. REUTERS/Fabrizio Bensch/File Photo
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A United Airlines flight from LaGuardia Airport in New York.

Overview

  • United Airlines announced a $387 million profit for Q1 2025, reversing a loss from the same period last year, with adjusted earnings beating analyst expectations.
  • The carrier will reduce domestic capacity by 4% starting in July 2025 and retire 21 older aircraft to align with softer demand in the U.S. market.
  • United provided two full-year earnings forecasts: $11.50–$13.50 per share in a stable economy and $7–$9 per share in a recessionary scenario.
  • Strong international and premium travel demand continues to bolster revenue, with premium cabin bookings up 17% and international unit revenue rising over 5%.
  • United's leadership emphasized the unpredictability of the macroeconomic environment, citing trade tensions and potential recession risks as key factors shaping its outlook.