United Airlines to Reduce Domestic Capacity by 4% Amid Demand Concerns

United Airlines plans to cut approximately 4% of its domestic capacity starting in the third quarter due to declining travel demand, reflecting a cautious outlook for the airline industry amid economic uncertainty. The airline has also announced the retirement of 21 aircraft earlier than planned and will continue reducing off-peak flights on lower-demand days. Despite these cuts, United reported strong first-quarter financial results with a 5.4% increase in operating revenue year-on-year, driven by growth in premium cabins and international travel. The company projects a potential earnings per share range of $11.50 to $13.50 under stable economic conditions, but this could drop to $7 to $9 if the U.S. enters a recession. Other airlines, including Delta, have also expressed concerns about softening demand and have withdrawn their full-year forecasts. Overall, the airline industry is facing challenges due to weakened consumer demand and the impact of President Trump's trade policies on market confidence.