United Air raises outlook for summer travel as demand heats up

by Bloomberg May 17, 2022

United Airlines Holdings Inc. sees even stronger travel demand this summer, with second-quarter passenger revenue increasing as much as 25% over the 2019 level, the airline said Monday in a filing.

United told investors last month it would return to profitability in the second quarter with the aid of record sales, spurred by strong recovery for summer travel. Chicago-based United on Monday also affirmed a 10% operating margin for the second quarter.

United shares rose as much as 4.4% to $45.46 after the close of regular trading in New York.

United also said Monday its jet fuel costs also continue to rise, with the company planning to pay $4.02 a gallon, up from $3.43 just weeks ago.

Less than a month ago, United forecast passenger revenue to be about 17% above the same period of 2019, owing to the strong demand and capacity that remains roughly 14% below pre-pandemic levels.