Vertiv Introduces New Single-Phase Uninterruptible Power Supply for Distributed Information Technology (IT) Networks and Edge Computing Applications in Europe, Middle East, and Africa (EMEA)Read more Students from JA Zimbabwe Win 2023 De La Vega Global Entrepreneurship AwardRead more Top International Prospects to Travel to Salt Lake City for Seventh Annual Basketball Without Borders Global CampRead more Rise of the Robots as Saudi Arabia Underscores Global Data and Artificial Intelligence (AI) Aspirations with DeepFest Debut at LEAP23Read more Somalia: ‘I sold the last three goats, they were likely to die’Read more Merck Foundation and African First Ladies marking World Cancer Day 2023 through 110 scholarships of Oncology Fellowships in 25 countriesRead more Supporting women leaders and aspirants to unleash their potentialRead more Fake medicines kill almost 500,000 sub-Saharan Africans a year: United Nations Office on Drugs and Crime (UNODC) reportRead more Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more

United Airlines reports profit but sees higher recession risk

show caption
United Airlines confirmed it expects full-year profits in 2022, but said overall capacity will lag that of the pre-pandemic 2019./AFP
Print Friendly and PDF

Jul 21, 2022 - 07:34 AM

NEW YORK — United Airlines reported a profitable second quarter Wednesday as strong travel demand boosted revenues, but signaled plans to rein in plane capacity as carriers confront operational challenges and recession worries.

The big US carrier said revenues “improved at a rapid pace” during the quarter and that it expects full-year profitability in light of still-strong demand.

But United said it expects full-year capacity in 2022 to be 13 percent below the 2019 level. It plans 2023 capacity growth of “no more than eight percent” from the 2019 level.

Chief Executive Scott Kirby cited the chance of a global recession as one of three major question marks facing the industry as the company reported quarterly profits of $329 million compared with a loss of $434 million in the year-ago period.

Revenues were $12.1 billion, more than twice that of the 2021 period and 6.2 percent above the 2019 level.

“It’s nice to return to profitability,” Kirby said. “But we must confront three risks that could grow over the next 6-18 months.

“Industry-wide operational challenges that limit the system’s capacity, record fuel prices and the increasing possibility of a global recession are each real challenges that we are already addressing.”

Shares fell 6.8 percent to $38.84 in after-hours trading.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.