Due to high travel demand, United Airlines has raised its revenue forecast for the second quarter of 2022.
The airline now anticipates total revenue per seat mile to climb by 23 percent to 25 percent in 2020 compared to 2019, up from a previous projection of around 17 percent.
However, due to personnel shortages in the business, United has somewhat revised its capacity plans for the current quarter. It now anticipates capacity to shrink by around 14 percent compared to pre-pandemic levels, compared to a previous projection of around 13 percent.
“In the period following the Company’s previous guidance, the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter of 2022,” United Airlines commented in a stock exchange filing on May 16, 2022.
United had previously stated on April 20, 2022, that it expected record second-quarter sales, allowing them to reclaim profitability. When the airline’s first-quarter results were released, Scott Kirby, the airline’s CEO, said the demand climate was “the strongest it’s ever been in my 30 years in the industry.”
While leisure travel has recovered fastest from the COVID-19 epidemic, the airline indicated at the time that business travel was also quickly returning.
Although the demand is improving, United warned in its May 16 newsletter that the price of oil has continued to rise. As a result, it now estimates the average aviation fuel price per gallon to be $4.02, up from $3.43 previously.