On April 8, 2025, United Airlines Boeing 767 passenger aircraft approaches Newar Liberty International Airport as trucks travel near Port Jersey Container Terminal in Jersey City, New Jersey.
Charlie Tribrorow | AFP | Getty Images
United Airlines It maintained its full-year forecast on Tuesday, but took the extraordinary measure to provide a second forecast if the US falls into a recession and calls the economy “unpredictable.” Either way, it expects to change profits.
The carrier warned that a recession could reduce profits this year alongside first-quarter revenues, but said booking trends remained stable.
The company left its forecast issued in January against adjusted earnings of $11.50 to $13.50 in January, but said it is expected that in the recession, it will earn $7 to $9 per share on an adjusted basis.
“The company’s outlook relies on a macro environment that it believes is impossible to predict this year with confidence,” he said in his securities application.
United Airlines said Tuesday it plans to cut flights starting this summer to match domestic travel needs for holidays. Carriers plan to cut domestic capacity by approximately 4% from the third quarter. rival Delta Air Lines The growth plans for this year are also slowing down.
United Airlines CEO Scott Kirby said the airline will “continue to implement a multi-year plan that allowed United to thrive in all demand environments.”
“It gives us a leading margin in good times and we look forward to expanding our lead even further in challenging economic situations,” he said in a revenue release.
In the first quarter, United Airlines lost $124 million or a loss of 38 cents per share to earnings of $387 million ($1.16 per share). Adjusted earnings of 91 cents per share excluded one-off gains related to aircraft sales leasebacks, surpassing Wall Street’s expectations of 76 cents per share.
Unit revenue for domestic flights fell 3.9% from last year in the first quarter, while sales of units from international routes increased by more than 5%. According to LSEG, revenues have risen by more than 5% from a year ago, just below the $13.26 billion forecast by analysts. Capacity has increased nearly 5% since the first quarter of 2024.
United Airlines stocks rose more than 5% in after-hours trading.
Future bookings for the past two weeks have been stable, the company said, with premium cabin bookings rising 17% from the same points last year and international bookings rising 5%, while carriers did not provide figures on demand for coach cabins in the country.
United said it expects to post second quarter adjusted earnings per share from $3.25 to $4.25, in line with the estimate, citing strong demand for premium cabin bookings and international travel.
This was reported in the fourth quarter ended March 31st, compared to what Wall Street had expected, based on estimates compiled by LSEG.
Earnings per share: 91 cents adjusted vs. 76 cents expected revaluation: $132.1 billion vs. $13.26 billion
The latest trends show that profitable airlines like United and Delta are taking advantage of demands from travelers who want to pay more for more expensive seats and other luxury products despite the emphasis on consumer sentiment amid President Donald Trump’s trade war, popular government layoffs and other factors.
Last week, Delta said it could not reaffirm its full-year outlook, citing market uncertainty.
