United Airlines to Cut Flights Amid Mixed Travel Demand

Newark, New Jersey — United Airlines announced Tuesday that it will reduce domestic flights by approximately 4% starting this summer, citing disappointing demand for domestic travel. Despite the cut, the airline reported strong international bookings and premium-cabin sales.

The decision aligns with United’s latest financial results, which showed a profit of $387 million, or $1.16 per share, for the first quarter that ended March 31. This marks a significant turnaround from a $124 million loss a year earlier. The airline’s adjusted earnings of 91 cents per share exceeded Wall Street’s expectations of 76 cents.

United’s revenue for the quarter increased by more than 5% to $13.21 billion, although it slightly fell short of analyst projections of $13.26 billion, according to LSEG. The carrier reported a 3.9% decline in unit revenue for domestic flights, while international unit sales rose more than 5%.

“We continue to see strong demand in our premium cabin and international routes,” United’s management stated in their earnings report. “While we are adjusting our domestic capacity in response to current demand, we remain optimistic about our earnings for the year.”

As for the future, United maintained its full-year adjusted earnings forecast of $11.50 to $13.50 per share. However, should a recession occur, the airline expects adjusted earnings to drop to between $7 and $9 per share.

United’s announcement comes as competitors like Delta Airlines are expressing concerns about market uncertainty, adjusting their own outlooks as they navigate economic challenges.

This news is still developing, and further updates are expected as the airline industry continues to adapt to changing consumer behaviors and economic conditions.