United to cut flights this summer amid economic uncertainty, softer demand
Airlines are taking a more cautious approach due to uncertainty related to President Donald Trump's tariffs
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United Airlines is trimming the number of domestic flights it will offer over the coming months as the industry remains concerned about lackluster demand stemming from the escalation of President Donald Trump's tariffs.
The Chicago-based carrier said in a regulatory filing on Tuesday that it is cutting domestic capacity by about 4% starting in the third quarter of 2025, "in response to the current demand environment." The airline's third quarter covers July, August and September, traditionally a peak travel period.
Additionally, the carrier announced in its quarterly earnings report that it will also make changes to how often it uses its planes, including flying less on slower travel days, through the end of 2025.
United Airlines aircraft at Newark Liberty International Airport in New Jersey. (Gary Hershorn/Getty Images / Getty Images)
United will also retire 21 planes sooner than planned, which the carrier has already announced.
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Airlines are concerned that consumers will pull back on travel because of economic uncertainty related to Trump's tariffs. In turn, carriers are taking a more cautious approach.
Earlier this month, Delta Air Lines CEO Ed Bastian said in the company's earnings report that "with broad economic uncertainty around global trade, growth has largely stalled."
The company, which planned to expand capacity by about 3% to 4% in the second half of 2025, said it now anticipates growth to be flat over last year.
Passengers wait for their luggage after arriving on United Airlines flights at O'Hare International Airport in Chicago. (Scott Olson / Getty Images)
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Bastian said the carrier is protecting margins and cash flow by focusing on things it can control, such as reducing planned capacity growth in the second half of the year while actively managing costs and capital expenditures.
Bastian projected that June quarter profitability to be around $1.5 billion to $2 billion. However, "given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," he said.
Meanwhile, United warned that its outlook is dependent on the macro environment, which it said "is impossible to predict this year with any degree of confidence."
The company forecast in January that its 2025 adjusted profit would be $11.50 to $13.50 per share. United said it still expects to be within that initial guidance range.
However, United warned that if the U.S. enters a recession, it would cause a five-percentage point drop in its revenue and its full-year adjusted profit would fall to between $7 and $9 a share.
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Still, United CEO Scott Kirby is confident that the carrier will "thrive in any demand environment."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 66.30 | -0.69 | -1.03% |
| DAL | DELTA AIR LINES INC. | 40.85 | +0.26 | +0.64% |
"Our ability to win brand-loyal customers and the resiliency of our business is a competitive advantage, and we are accelerating our investments in our product, service, technology and experience to further expand that lead," Kirby said.
United reported Wednesday that in the first quarter of the 2025 fiscal year, the airline flew the largest schedule by available seat miles in its history, carrying a record of more than 450,000 customers per day on average.