United Airlines plans to cut about 4% of its domestic capacity starting in July as it braces for lower travel demand.
The carrier said it is "impossible to predict this year with any degree of confidence," how the year will play out as President Donald Trump's trade war wreaks havoc on markets.
It's the second major US air carrier to offer a less-than-rosy outlook as the industry grapples with a potential decline in ticket sales after Delta withdrew its annual outlook earlier this month, citing slower growth due to economic uncertainty created by the Trump administration's tariffs.
Unlike Delta, United instead offered two scenarios: one if the economy remains stable and another for a "recessionary environment." In the best case, the company expects up to $13.50 per share in profits this year, or just over half that if the US slips into a recession.
"The Company's guidance is based on consensus market macroeconomic expectations. However, a single consensus no longer exists," it said.
For the first quarter of 2025, which ended March 31, United said it earned $0.91 per share, topping analyst estimates of $0.74 compiled by Bloomberg. Shares rose as high as 6% in late trading.
In addition to the capacity cuts, the airline said it would reduce the number of off-peak flights on lower demand days and confirmed plans announced last month to retire 21 aircraft ahead of schedule, which will save $100 million this year on engine overhauls.
Both United and Delta said strong international demand, especially in premium seats, was helping to pick up some of the domestic slack.
