United Airlines said Tuesday that it would reduce its national flights by approximately 4% from this summer due to the smoother demand.
The Chicago -based airline also predicted lower profits than expected for the current quarter and warned about the downward risks to its perspective of the whole year if the US economy slides into a recession of the current commercial war.
United said his financial forecast depends on the macro environment that, he added, is “impossible to predict this year with any degree of confidence.”
The company reported that its reservations forward during the last two weeks remained stable, with the premium cabins by 17% and internationally 5% year after year.
“The company’s expectation has become bimodal, be it the economy of the United States, Willin Waker but stable, or the United States can enter a recession,” he said.
United estimates that an economic recession would lead to a drop of 5 percentages in its income, which translates into a full -year tight gain or $ 7 per share at $ 9 per share.
In January, he predicted an adjusted gain or $ 11.50 to $ 13.50 per share by 2025. The company said it still hopes to have an estimate if the demand environment remains stable and fuel prices remain around their levels.
United movements arrive days after Delta Air Lines and Frontier Airlines withdraw their forecasts throughout the year, saying that the demand for travel has “stagnated” in the midst of the growing economic uncertainty.
President Trump’s trade war has shaken global markets, hitting business and consumer confidence. As traveling is a discretionary article for many consumers and companies, the growing economic concerns have clouded the prospects of the airline industry and have caused a sale of shares.
The demand for woven consumers has also undermined industry pricing power. The airline rates fell 5.3% in March since a few months before, its largest monthly decline since September 2021, according to the data of the United States Labor Department.
United actions have dropped 31% this year and have decreased 43% since their maximum of 52 weeks. In a sign of the feeling of bearish investors, the short interest in the shares of the company has increased by 45% since the February of the February.
With publication cables
