Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more The United States Contributes USD $223 Million to Help World Food Programme (WFP) Save Lives and Stave Off Severe Hunger in South SudanRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more Senegal and Mauritania Are Rich in Resources, Poor in Infrastructure, Now Is the Time to Change That Read 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.

  • bio
  • twitter
  • facebook
  • latest posts

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.