United slows capacity growth; Q4 transatlantic ASMs to be down 1%-2%

United Airlines is slowing capacity growth in the second half of 2016, and on transatlantic routes will cut capacity by 1% to 2% in Q4 compared to the 2015 December quarter. The capacity adjustments come as United faces a continued weak revenue environment highlighted by flat corporate travel demand. United’s Q2 unit revenue, as measured in PRASM, fell 6.9% year-over-year to 11.36 cents and United is providing guidance for PRASM to decline 5.5% to 7.5% year-over-year in Q3. The transatlantic adjustments also come in the aftermath of the Brexit vote in the UK. United executives said that full-year 2016 capacity will grow just 1% to 1.5% compared to 2015, down from prior guidance of 1.5% to 2.5% capacity growth for the year. Senior executives indicated that more capacity adjustments should be expected in the future. <br/>