Carrier maintains full-year earnings forecast as premium and overseas bookings drive profitability
United Airlines (UAL) is reducing domestic flight capacity by about 4% starting in the third quarter, responding to softer demand for U.S. travel. At the same time, the airline is leaning into strong international and premium-cabin demand, which continues to buoy its financial performance.
The carrier reported a first-quarter profit of $387 million, or $1.16 per share, compared to a loss of $124 million, or 38 cents per share, a year ago. Adjusted earnings came in at 91 cents per share, topping Wall Street estimates of 76 cents. Revenue rose more than 5% year over year to $13.21 billion, just shy of analysts’ expectations of $13.26 billion.
Despite challenges in the domestic market—where unit revenue dropped 3.9%—United saw a more than 5% increase in unit sales from international routes. This aligns with a broader trend among major carriers, like Delta Air Lines, that are benefiting from travelers opting for higher-priced tickets and premium services, even amid economic uncertainty.
United reaffirmed its second-quarter adjusted earnings guidance of $3.25 to $4.25 per share and maintained its full-year forecast of $11.50 to $13.50 per share. However, the airline added that in a potential recession, earnings could fall to a range of $7 to $9 per share.
As consumer sentiment is tested by ongoing economic headwinds—including government layoffs and trade-related tensions under President Donald Trump’s administration—airlines like United are adjusting their strategies to focus on high-margin international markets and luxury travel segments.
The shift signals a calculated pivot for profitability, even as broader uncertainty clouds the travel landscape.
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