United Airlines has indicated that there might be a relief in the oversupply in the domestic market in the United States.
By mid-August, the growth rate of flight numbers across the industry on domestic flights in the US is expected to decrease by about 3%. United Airlines has also reduced the supply on its domestic flights by about 3% for the fourth quarter.
Scott Kirby, CEO, said, “Several airlines have begun reducing their loss-making capacity, and we expect to achieve top-class revenue among major airlines in the latter half of the third quarter. United Airlines has been preparing for the moment when the overall domestic transport capacity in the industry is adjusted, and it is now clear that this turning point is just 30 days away.”
In the financial results for the period from April to June 2024, premium revenue increased by 8.5% compared to the same period last year, while basic economy revenue increased by 38%. The market share of domestic business travelers also expanded. The pre-tax profit was 1.7 billion US dollars, and the pre-tax profit margin was 11.6%. Earnings per share matched expectations. The daily number of passengers reached 565,000, setting a new record.
