United Airlines Reduces Domestic Capacity, Citing ‘Current Demand Environment'

Summary of Key Points Core Viewpoint - Airlines are adjusting their capacity and operations in response to declining demand, particularly in the domestic leisure segment, while focusing on premium offerings for wealthier travelers. Group 1: Capacity Adjustments - United Airlines will reduce its scheduled domestic capacity by 4 percentage points starting in Q3, continuing this approach into Q4 2025 [1] - United will retire 21 aircraft earlier than previously planned [1] - American Airlines and Delta Air Lines also reported softness in the domestic leisure segment and increasing macroeconomic uncertainty [3] Group 2: Revenue Trends - United Airlines experienced a 3.9% decline in passenger revenue per available seat mile (PRASM) for domestic flights, while international flights saw a 5.2% increase [2] - Delta Air Lines noted resilience in premium and international businesses, but softness in domestic and main cabin sectors [3] Group 3: Market Conditions - Airlines are focusing on amenities for wealthier leisure travelers as other segments reduce spending due to economic uncertainty [4] - Factors affecting bookings include the trade war, government layoffs, fewer international visitors, and weaker demand for domestic coach seats from price-sensitive consumers [5]