Why US air travel could face 'real trouble' by the end of Q3

3 months ago 50

Wed, Apr 16, 2025, 7:51 AM

United Airlines (UAL) banal is climbing aft posting a archetypal 4th nett and a grounds $13.2 cardinal successful revenue. Boyd Group International president Mike Boyd joins Morning Brief to sermon United's forward-thinking strategy and the broader challenges facing the US aerial proscription system.

To ticker much adept insights and investigation connected the latest marketplace action, cheque retired much Morning Brief here.

00:00 Speaker A

United Airlines shares are connected the determination this morning, higher aft swinging to a nett successful the archetypal 4th with gross hitting a grounds precocious of $13.2 billion. The hose besides taking an antithetic attack to guidance, issuing 2 2025 nett forecasts. One if the existent situation remains stable, and different if the US system enters a recession. Joining america now, we've got Mike Boyd, Boyd International Group president. Uh, large to person you present with us. So, however are you looking astatine the United results close now? And, and the world of these 2 antithetic results that they're forecasting to the street?

01:07 Mike Boyd

Well, this is precise emblematic of United. They're truthful overmuch up of the curve compared to truthful overmuch of the different manufacture due to the fact that they spot what's happening and they're trying to respond to it. And I deliberation this United Next programme they're putting together, this is wherefore United is going to person different good, bully 4th coming up. But the existent happening that they're bringing up present is we person a aerial proscription strategy successful the United States that is liable to beryllium successful existent occupation by the extremity of the 3rd quarter, 4th quarter, commencement of the 4th quarter, due to the fact that we person different full assemblage called the ULCC sector, like, uh, Frontier and Spirit. They got mode excessively galore airplanes, they got a batch of nomad capacity, and they're going to beryllium rumbling around. And I deliberation United Airlines sees that, and they're getting prepared for that.