CHICAGO- United Airlines (UA) has announced plans to reduce domestic capacity by 4% and accelerate the retirement of older aircraft amid economic uncertainty, despite reporting its most profitable first quarter since before the COVID-19 pandemic.
The Chicago O’Hare International Airport (ORD) headquartered carrier shared these developments as part of its Q1 financial results, positioning between Delta Air Lines (DL) and American Airlines (AA) in the reporting calendar.
Photo: Clément AlloingUnited Cuts Domestic Flights
United Airlines is implementing significant operational changes to navigate the unpredictable economic landscape. The 4% reduction in domestic capacity will focus primarily on off-peak flying during lower demand periods.
This strategic pullback comes as United describes the current macroeconomic environment as “impossible to predict this year with any degree of confidence.”
The airline plans to accelerate the retirement of 21 older Airbus A319 and A320 aircraft. However, fleet modernization will continue with the scheduled delivery of 7 Boeing 787 Dreamliners, 27 Boeing 737 MAX jets, and 22 new Airbus A321neo and A321XLR planes. These additions will result in a net increase of 36 aircraft to United’s mainline fleet between Q1 2025 and year-end 2025.
While domestic travel appears to be softening—evidenced by the capacity cuts—United reports that international travel demand “remains strong.” The airline has observed a 17% year-on-year increase in forward bookings for premium cabins and a 5% increase for international travel over the past two weeks.
Similar to Delta Air Lines, United notes that both its loyalty program and cargo business have demonstrated resilience despite economic uncertainty. This highlights the diversified revenue streams that major carriers rely on during challenging periods in the core passenger business.
Photo: Clément AlloingInvestment Strategy Amid Economic Concerns
In contrast to Delta’s announced cost-cutting measures and capital expenditure deferrals, United CEO Scott Kirby has committed to “accelerating our investments in our product, service, technology, and experience.” This divergent approach represents different strategic responses to the same uncertain economic environment.
United’s SEC filing acknowledged that bookings had weakened but stabilized over the previous six weeks.
The airline is preparing contingency plans, noting that if the US economy enters a recession, they are “modeling an incremental 5 point reduction in our total operating revenue in 2Q 2025 through 4Q 2025.”
Photo: Scott Kirby LinkedIn PageBest First Quarter Results
United Airlines (UA) today reported its best first-quarter financial results in five years, achieving record revenue of $13.2 billion despite challenging macroeconomic conditions.
The carrier recorded a profit with $478 million in pre-tax earnings, representing a 3.6% pre-tax margin, while continuing to build brand loyalty across its premium, business, and basic economy segments with substantial year-over-year growth.
Premium cabin revenue rose 9.2%, business revenue increased 7.4%, and Basic Economy revenue grew 7.6% compared to the same period last year. International travel remained particularly strong, with Atlantic RASM up 4.7% and Pacific RASM increasing 8.5% year-over-year. Other revenue streams showed remarkable strength, with cargo and loyalty programs growing 9.7% and 9.4% respectively.
Photo: Denver AirportLargest Capacity
United’s operational performance started 2025 stronger than any previous year since 2021. In the first quarter, the airline flew its largest schedule by available seat miles in company history, carrying a record average of over 450,000 customers daily.
The airline achieved its best on-time arrival and departure rates for the first quarter since 2021 and reduced its seat cancellation rate by half compared to the first quarter of 2024.
Customer satisfaction reached record highs for the first quarter, increasing 10% year-over-year with the highest-ever ratings for pilot communication, inflight entertainment, and check-in experience.
Digital engagement continues to grow, with 85% of customers using digital check-in and 83% engaging with the United app for day-of-travel needs, a 5% increase year-over-year.
In the first quarter, United took delivery of its 1,000th mainline jet, enabling continued expansion of premium offerings with 69,000 average daily premium seats, a 7% increase year-over-year. The airline restarted service to Tel Aviv (TLV) from Newark (EWR) with twice-daily flights and launched its first-ever nonstop service between Newark and Dominica.
United continues to invest in community engagement, with more than 850 employees volunteering over 6,900 hours at non-profit organizations worldwide. The airline transported over 8,000 pounds of cargo to Los Angeles to aid those affected by fires and donated nearly 15 million miles and approximately $400,000 for disaster relief with customer support.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
United Airlines Top 20 Busiest International Routes in 2025
The post United Cuts 4% of Domestic Flights Capacity, $13.2 Billion Revenue in Q1 appeared first on Aviation A2Z.
