United says it will cut flights this summer as airlines brace for an economic slowdown

Core Viewpoint - United Airlines is preparing for lower travel demand by cutting about 4% of its domestic capacity starting in July, amid uncertainty caused by President Trump's trade policies [1][2]. Group 1: Company Outlook - United Airlines is the second major US air carrier to provide a pessimistic outlook, following Delta's withdrawal of its annual forecast due to economic uncertainty from tariffs [2]. - Unlike Delta, United Airlines presented two scenarios for its financial outlook: one for stable economic conditions and another for a recessionary environment, projecting profits of up to $13.50 per share in the best case, and just over half that in a recession [3]. - The company acknowledged the lack of a single consensus on market macroeconomic expectations, indicating a high level of uncertainty [3]. Group 2: Financial Performance - For Q1 2025, United Airlines reported earnings of$0.91 per share, exceeding analyst estimates of $0.74, leading to a share price increase of up to 6$100 million this year on engine overhauls [4]. Group 3: Market Dynamics - Both United Airlines and Delta Airlines noted that strong international demand, particularly for premium seats, is helping to offset some of the decline in domestic travel [5].