United Airlines Expecting Unit Revenue To Be Down Approximately 12% In Second Quarter; Delta Air Lines Records Overall Adjusted Net Loss Of $2.26bn For Quarter That Ended On March 31
United Airlines is expecting its unit revenue to be down by approximately 12% in the second quarter.
United Airlines Holdings Inc has forecast a smaller fall in second quarter unit revenue and core margins, and said that it expects domestic leisure yields for summer travel to exceed 2019 levels.
Airlines are seeing a pick-up in summer bookings as easing COVID-19 restrictions and widespread vaccination efforts encourage travel in the United States, nearly a year after the pandemic hit demand.
United said that ticketed yields accelerated in the second quarter, but warned that capacity for the same period would fall by at least 46% compared to 2019, hurt by fewer flights to India and Israel during the health crisis.
The US airline had previously expected second-quarter capacity to be down by approximately 45%.
"Business demand continues to be significantly depressed, though bookings for business travel are starting to recover," United said.
The carrier expects total revenue per available seat mile (TRASM), or unit revenue, to be down by approximately 12% in the second quarter from 2019, compared to its prior outlook of down about 20%.
United expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin in the quarter to be down by 11%, compared to its prior forecast of down 20%.
Southwest Airlines last week trimmed its second-quarter average core cash burn forecast, as improving demand for leisure travel is expected to more than offset higher fuel prices.
Meanwhile, Delta Air Lines has recorded an overall adjusted net loss of $2.26 billion for the quarter that ended on March 31, which was its fifth quarterly loss in a row, as air travel continued to be stifled by the COVID-19 pandemic.