United Airlines: Positive revenue review for the current quarter, with emphasis on increased travel demand

United Airlines Holdings Inc yesterday revised its revenue estimate for the quarter we are going through, despite its limited flight schedule, focusing on increased travel demand.

The Chicago-based airline expects its total revenue for each available passenger seat per mile traveled to increase by 23% -25% compared to the corresponding period of 2019, compared to the previous estimate of an increase of 17%. %.

Last month, United announced that it expects the highest quarterly revenue in its history, for the quarter through June, to help and return to profitability.

Despite the fact that the increase in reservations is largely attributed to tourists, the reopening of its offices, as well as the easing of travel restrictions have strengthened the perspective of the industry.

Last week, United announced that this summer is expected to be the busiest since the pandemic began. The company estimates that about 5.3 million passengers will choose it for their flights, regarding the official holiday of July 4.

The high demand for tickets is also helping United and other airlines deal with high fuel prices, which more than doubled last year.

United also increased its estimate for fuel costs for the current quarter by 17%, while now it is estimated that the same costs will increase by about 40% from the first quarter of the year.

The company’s non-fuel-related operating costs are expected to be higher than previously estimated, according to United. However, the company expects another adjusted profit margin of 10%.

United has updated its plans to strengthen its flight program. For the current quarter, it is expected that its operational capacity will be reduced by 14% compared to pre-pandemic levels.

SOURCE: AMPE