A United Airlines Boeing 767 passenger aircraft reaches the Newark Liberty International Airport as the trucks travel near the Port Jersey Container Terminal in Jersey City, New Jersey on 8 April 2025.
Charlie Tribalue | AFP | Getty images
United Airlines On Tuesday, maintained its entire year’s forecast, but took an unusual step to offer a second forecast, which the US should slip into the recession, called the economy “impossible to predict”. Either way, it expects to turn on a profit.
The carrier warned with its first quarter earnings that a recession could reduce profits this year, but said that booking trends are stable.
The company left the expectations released in January for adjusted income from $ 11.50 to $ 13.50, but said in a recession, it would expect to earn between $ 7 per share and $ 9 per share on an adjusted basis.
“The company’s approach depends on the macro environment, which the company believes that it is impossible to predict with confidence of any degree this year,” it has been said in a securities filing.
United Airlines said that it is planning to cut flights starting in this summer so that the demand for domestic journey during booking can be disappointed. Pricier, International Travels remain strong.
United plans to trim the domestic capacity of about 4% in the third quarter. This includes off-pick domestic flights, where the demand has fallen the most. rival Delta air lines as well as Marginal airlines Are also Cutting their growth plans This year due to weak-to-applied domestic booking.
Profit airlines are capitalizing on the demand of passengers wishing to pay more for United and Delta, prisier seats and other high-end products, even economic concerns weigh on consumer spirit between President Donald Trump’s business war, public sorting and other factors.
“The weakest region we have is domestic,” said in an interview with CNBC, CEO of United Airlines. “Squalk box” On Wednesday. He said that the second-largest section is Canada, where United and other carriers have taken back. Falling demand this year
The future booking has been stable in the last two weeks, the company said, the premium-cabin booking is up 17% from the same point last year and international booking is up to 5%, although the carrier has not provided a figure on the demand for domestic coach-cabin.
United Chief Commercial Officer Andrew Nokela said on an earning call on Wednesday that Europe-origin booking for the United States is 6% less than the previous year, while the Canadian people are 9% below.
For the first quarter, the United Airlines penetrated a profit of $ 387 million, or $ 1.16 per share, or a loss of 38 cents per share per share. Adjusting 91 cents per share, which excludes a one-time profit related to the sale-leezback of the aircraft, beats the expectations of 76 cents per share of Wall Street.
The unit’s revenue for domestic flights fell 3.9% from last year during the first quarter, while the sales of the unit from international routes increased by more than 5%. According to LSEG, the expected $ 13.21 billion of analysts had more than 5% from a year ago, and came down slightly below $ 13.26 billion. From the first quarter of 2024, the capacity was about 5%.
United Airlines said that it is expected after the adjusted income in the second quarter of $ 3.25 to $ 4.25 in the second quarter, citing premium-cabin booking and strong demand for international travel.
Here the United Airlines reported for the quarter on March 31, compared to Wall Street, based on the estimates compiled by LSEG:
- earnings per share: 91 cents adjusted vs 76 cents expected
- Income: $ 13.21 billion vs $ 13.26 billion is expected
Delta said last week Could not confirm again Citing uncertainty in the market, its full-year approach.
United does not expect “a meaningful direct effect from the tariff tied to the purchase of his airplane”, the airline president, Brett Heart said on Wednesday’s earnings call.
,Boing Accounts for the majority of our future total order books and most of our Airbus A321NEOS are produced in Alabama, “he said.
While Boeing produces aircraft in America and produces some of its narrow bodies in Airbus Alabama, aircraft depends on a web of imported parts, including large components of CFM engine, which are made in a joint venture Landless And the Safran of France.
CEO of Delta, Ed Bastian, the carrier last week said Will not pay new tariffs Despite the tariff, it will avoid any aircraft of the manufacturer that is affected by new taxes.
