United Airlines to cut 3Q capacity on uncertainty

Market: Oil products
15/04/25

United Airlines plans to decrease the number of flights it operates in the third quarter because of lower passenger numbers and economic uncertainties.

The US-based air carrier said that it will be removing four percentage points of scheduled domestic capacity in the third quarter of 2025 and expects to retire 21 aircraft earlier than previously planned.

Global economic uncertainty prompted the company to provide two scenarios for for its financial results for 2025 — one based on the US economy remaining weaker but stable, and the other for the US entering a recession. In the stable scenario, assuming current fuel price outlooks, the company expects a $11.50-$13.50 per share profit. Under the recessionary scenario profits would be in the $7-9/share range.

Despite the possibility of slower busines, the airline plans to expand its investments at Chicago O'Hare International Airport in Chicago, Illinois, with six additional gates and plans to expand at San Francisco's international airport as well.

1Q results

In the first quarter domestic passenger load factor — a measurement of capacity utilization — declined by 3.4 percentage points to 80.3pc compared to the same quarter in 2024.

United's revenue passenger miles (RPM) — a measurement of total miles flown by paying passengers — increased by 3.6pc to 59.5bn miles in the first quarter compared to the previous year.

Available seat miles (ASM) — a measure of capacity — rose by 4.9pc to 75.2bn miles in the quarter.

United's average fuel cost decreased by 12.2pc to $2.53/USG during the first quarter. The airline consumed 4.1pc more fuel in the quarter.

Total operating expenses rose by 1.3pc to $12.6bn in the quarter while total operating revenue increased by 5.4pc to $13.2bn.

The airline reported $387mn profit in the first quarter, up from a $124mn loss reported a year earlier.

By Hunter Fite

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22/04/25

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