United to cut flights as domestic demand disappoints but international and premium travel drives profits
United Airlines is planning to cut flights starting this summer to match disappointing domestic travel demand while bookings for pricier, international trips remain strong.
United Airlines is planning to cut flights starting this summer to match disappointing domestic travel demand while bookings for pricier, international trips remain strong.
The carrier warned Tuesday that a recession could drive down profits this year, but said that booking trends are stable, and maintained its current full-year earnings forecast.
The company left in place expectations issued in January for adjusted earnings per share of $11.50 to $13.50, but said that in a recession it would expect to earn between $7 per share and $9 per share on an adjusted basis.
“The Company’s outlook is dependent on the macro environment which the Company believes is impossible to predict this year with any degree of confidence,” it said in a securities filing.
United plans to trim domestic capacity by about 4% starting in the third quarter. Rival Delta Air Lines is also slowing its growth plans this year.
Rating: 5