United Airlines said a deterioration in bookings could lead it to lower its 2025 outlook to $7 to $9 a share from $11.50 to $13.50.United Airlines said a deterioration in bookings could lead it to lower its 2025 outlook to $7 to $9 a share from $11.50 to $13.50.
United Airlinespricier, international trips remain strong.
The carrier said Tuesday that it plans to trim domestic capacity by about 4% starting in the third quarter. It expects to post second-quarter adjusted earnings per share of $3.25 to $4.25, in line with estimates, citing strong demand for premium-cabin bookings and international travel.
For the first quarter, United swung to a $387 million profit, or $1.16 a share, from a $124 million loss, or a loss of 38 cents a share, a year earlier. Adjusted earnings of 91 cents per share outpaced Wall Street’s expectations of 76 cents per share.
Unit revenue for domestic flights fell 3.9% from last year during the first quarter, while unit sales from international routes rose more than 5%. Revenue of $13.21 billion was up more than 5% from a year ago, and came in slightly below the $13.26 billion that analysts expected, according to LSEG.
Here is what United reported quarter ended March 31 compared with what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share: 91 cents adjusted vs. 76 cents expected
- Revenue: $13.21 billion vs. $13.26 billion expected
The latest trend shows how profitable airlines like United and its main rival Delta Air Lines
Delta last week said it couldn’t reaffirm its full-year outlook citing uncertainty in the market.
United stopped short of pulling its full-year forecast Tuesday — leaving in place expectations issued in January for adjusted earnings per share of $11.50 to $13.50 — but said in a recession it will earn between $7 per share and $9 per share on an adjusted basis.
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