A United Airlines Boeing 767 passenger aircraft approaches Newark Liberty International Airport as trucks travel near the Port Jersey Container Terminal in Jersey City, New Jersey, on April 8, 2025.
Charly Triballeau | Afp | Getty Images
United Airlines maintained its full-year forecast on Tuesday but took an unusual step of offering a second forecast should the U.S. slip into a recession, calling the economy “impossible to predict.” Either way, it expects to turn a profit.
The carrier warned alongside its first-quarter earnings that a recession could drive down profits this year, but said booking trends are stable.
The company left in place expectations issued in January for adjusted earnings per share of $11.50 to $13.50, but said that in a recession, it would expect to earn between $7 per share and $9 per share on an adjusted basis.
“The Company’s outlook is dependent on the macro environment which the Company believes is impossible to predict this year with any degree of confidence,” it said in a securities filing.
United Airlines said Tuesday that it plans to cut flights starting this summer to match disappointing domestic travel demand while bookings for pricier, international trips remain strong. The carrier plans to trim domestic capacity by about 4% starting in the third quarter. Rival Delta Air Lines is also slowing its growth plans this year.
United Airlines CEO Scott Kirby said the airline “will continue to execute our multiyear plan that has allowed United to thrive in any demand environment.”
“It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times,” he said in an earnings release.
For the first quarter, United Airlines swung to a $387 million profit, or $1.16 a share, from a $124 million loss, or a loss of 38 cents per share, a year earlier. Adjusted earnings of 91 cents per share, which exclude one-time gains related to aircraft sale-leasebacks, 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. Capacity was up almost 5% from the first quarter of 2024.
United Airlines shares were up more than 5% in after-hours trading.
Future bookings over the past two weeks have been stable, the company said, adding that premium-cabin bookings are up 17% from the same point last year and international bookings are up 5%, though the carrier did not provide a figure on domestic coach-cabin demand.
United Airlines said 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.
Here is what United Airlines reported for the quarter that ended March 31 compared with what Wall Street was expecting, based on estimates compiled by LSEG:
Earnings per share: 91 cents adjusted vs. 76 cents expectedRevenue: $13.21 billion vs. $13.26 billion expected
The latest trend shows how profitable airlines such as United and Delta are capitalizing on demand from travelers willing to pay more for pricier seats and other higher-end products, even as economic concerns weigh on consumer sentiment amid President Donald Trump’s trade war, mass government layoffs and other factors.
Delta last week said it could not reaffirm its full-year outlook, citing uncertainty in the market.
