United Airlines To Cut Back On Flights This Summer As It Anticipates Decline In Demand

United Airlines Holdings Inc. UAL said it will roll back its flight operations this summer as the company readies itself for a decline in air travel.

What Happened: In a full-year forecast released by the company, United Airlines announced it will cut its flight schedule by 4% starting in July, owing to softer customer demand.

The airline also announced it will retire 21 older aircraft from its fleet as well as scale back on off-peak flights on days with lower demand for air travel, which the company says is part of ‘prudent adjustments to the utilization rate of its fleet'.

The airlines also offered two forecasts — one scenario outlined a stable economy whilst the other outlined a ‘recessionary environment'. United said it earned $0.91 per share in Q1 2025.

Why It Matters: The news comes in as United recorded over $13.21 billion in revenue for the quarter, amid uncertainty as Donald Trump's tariffs wreak havoc in the global markets.

Delta Airlines being the leader in the sector, experienced a surge in stock value after the Donald Trump administration announced a 90-day halt on all tariffs, which had cast doubts over the company's 2025 plans.

However, the aviation industry in the U.S. faces uncertainty with China imposing a halt on all imports of aircraft made by manufacturer Boeing Co. BA into the country.

Boeing could face another challenge as it grapples with a potential $3.4 million in modification costs to its fleet as the FAA proposes an airworthiness report after it reviewed an incident involving a Boeing aircraft where a passenger got stuck in the onboard lavatory.

Price action: UAL stock experienced a 29.79% YTD in value and currently trades for $67.00 on the NASDAQ, according to Benzinga Pro data.

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