Newark, New Jersey – United Airlines has announced its full-year forecast, along with a contingency plan in case of a potential recession in the United States. Despite economic uncertainties, the airline giant remains optimistic about its profitability for the year.

While fears of a recession loom, United Airlines disclosed that if such a scenario unfolds, it expects adjusted earnings per share to fall between $7 and $9, significantly lower than the initial forecast of $11.50 to $13.50. The company cited the unpredictable macroeconomic environment as the main reason for the dual forecast.

In response to changing travel demands, United Airlines revealed plans to reduce domestic flight capacity by 4% starting in the third quarter. This strategic move reflects the airline’s focus on maintaining profitability in the face of evolving market conditions.

United CEO Scott Kirby emphasized the airline’s commitment to its long-term plan, designed to ensure success in any economic climate. Kirby expressed confidence in United’s ability to weather economic challenges and sustain industry-leading margins.

Financially, United Airlines reported a $387 million profit for the first quarter of the year, a substantial improvement from the previous year. The airline’s adjusted earnings per share of 91 cents exceeded analysts’ expectations, showcasing its resilience amid economic uncertainties.

Despite a decline in domestic flight revenue, United Airlines saw a rise in revenue from international routes, indicating a shift in travel preferences among consumers. The airline’s proactive measures to adapt to changing market dynamics are evident in its decision to focus on more profitable international trips.

In light of strong demand for premium-cabin bookings and international travel, United Airlines anticipates second-quarter adjusted earnings per share to align with estimates. These projections underscore the airline’s confidence in its ability to leverage high-demand segments to drive revenue growth.

Overall, United Airlines’ proactive approach to adjusting its operations in response to changing market conditions positions the company well to navigate economic uncertainties and sustain profitability in the long run. With a focus on maximizing revenue from premium-cabin bookings and international travel, the airline remains optimistic about its performance in the coming quarters.