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United Airlines cuts flights amid economic concerns, focuses on international, premium travelers

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United Airlines cuts flights amid economic concerns, focuses on international, premium travelers
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Ashley Kosciolek Senior cruise writer | The Points Guy

United Airlines has announced adjustments to its flight schedule, citing a softening demand and economic concerns. The airline is cutting early-morning and late-night flights, especially those before 7 a.m. and after 8 p.m., largely impacting flights between the U.S. and Canada and routes previously supported by government travel.

The Chicago-based carrier reported a $387 million profit for the first quarter of 2025, a significant improvement over the previous year. The first quarter typically poses challenges for airlines, often resulting in losses.

Current global economic tensions, including President Donald Trump's trade war, have cooled demand, particularly affecting travel from Canada and Europe. United's Chief Financial Officer Michael Leskinen expressed apprehension on the current economic trajectory, suggesting potential recession scenarios.

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Despite downturns in economic conditions, United noted some stability in its bookings, though a decrease in international travel interest from Europe and Canada was observed. Chief Commercial Officer Andrew Nocella shared that while booking levels dropped, they have shown stability over the past six weeks.

The airline remains optimistic about its premium offerings, noting consistent demand for high-end travel experiences and plans to launch services to new international destinations. This perspective contrasts with sentiments from Frontier Airlines CEO Barry Biffle, who suggested that economic challenges might favor budget airlines like his.

Consumer spending on United's cobranded credit cards increased by 9% in the first quarter, indicating sustained customer engagement. However, further schedule adjustments may occur if economic conditions worsen.

In addition to flight schedule changes, United moved forward with the retirement of 21 older aircraft and is preparing to introduce new jets as part of its fleet expansion plan. The airline is also launching its Starlink-powered Wi-Fi service next month for MileagePlus members.

United secured control over six additional gates at Chicago O'Hare, as American Airlines increased its presence, with American's seat offerings set to rise by 22% this summer.

The airline remains focused on maintaining its large-scale operations at O'Hare, highlighting its strength in comparison to its competitors.

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