Air traffic United Airlines with two forecasts due to recession fears
For the US airline United Airlines, the economic uncertainty following Donald Trump's tariff crackdown is so great that it has issued two forecasts for the current year. One of them assumes a recession in the USA.
16.04.2025, 00:30
SDA
Investors rewarded the move: the share price rose by around seven percent at times in after-hours trading. United explained this unusual step by saying that there was no longer a unanimous opinion on future economic development. It was therefore necessary to plan for a weaker but stable US economy as well as for a recession.
In the latter case of a shrinking economy, United anticipates earnings of seven to nine dollars per share. If the economy remains stable, it may be 11.50 to 13.50 dollars per share. Some US economists fear that the high import tariffs imposed by Donald Trump could stifle the US economy. From the third quarter onwards, capacity on flights within the USA is to be reduced by four percent, United announced.
The number of United passengers worldwide rose by 3.8 percent year-on-year to 40.8 million in the first quarter. Sales grew by 5.4 percent to just over 13.2 billion dollars, roughly in line with analysts' average expectations. The bottom line was a profit of 387 million dollars after a loss of 124 million dollars a year ago.
