United Airlines Expects Lower Profit, Plans Capacity Cuts to Boost Pricing Power
United Airlines forecasted a lower-than-expected profit for the quarter ending September 30th. The airline also plans to cut its domestic capacity by 3 percentage points in the fourth quarter to bolster its pricing power as other US carriers are estimated to reduce seats. While travel demand is high this summer, carriers have increased domestic seats in excess of demand, putting pressure on airfares and profits. Capacity growth is now expected to moderate which should help support ticket prices.
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00:00It's Benzinga, and here's what's on the block.
00:02United Airlines forecasted a lower-than-expected profit for the quarter ending September 30th.
00:08The airline also plans to cut its domestic capacity by three percentage points in the
00:12fourth quarter to bolster its pricing power as other U.S. carriers are estimated to reduce
00:16seats.
00:17While travel demand is high this summer, carriers have increased domestic seats in excess of
00:21demand, putting pressure on airfares and profits.
00:25Capacity growth is now expected to moderate, which should help support ticket prices.
00:28For all things money, visit Benzinga.com.