United Airlines on Wednesday reported a profitable second quarter as strong travel demand boosted revenue, but signaled plans to trim aircraft capacity as airlines face operational challenges and recession concerns.
The major US carrier said revenue “improved rapidly” during the quarter and that it expects full-year profitability given still-strong demand.
However, United expects full-year capacity in 2022 to be 13 percent below 2019 levels. It plans for 2023 capacity growth of “no more than eight percent” compared to 2019 levels.
Chief Executive Scott Kirby cited the possibility of a global recession as one of three big question marks facing the industry as the company reported quarterly profit of $329 million compared to a loss of $434 million in the year-ago period.
Revenue was $12.1 billion, more than double the 2021 period and 6.2 percent above 2019 levels.
“It’s nice to be back in the black,” Kirby said. “But we have to face three risks that could grow over the next 6-18 months.
“Industry-wide operational challenges that are limiting the capacity of the system, record high fuel prices and the increasing likelihood of a global recession are real challenges we are already addressing.”
Shares fell 6.8 percent to $38.84 in after-hours trading.
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