United Tuesday forecast a smaller fall in Q2 unit revenue and core margins, and said it expects domestic leisure yields for summer travel to exceed 2019 levels. Airlines are seeing a pick up in summer bookings as easing COVID-19 restrictions and widespread vaccination efforts encourage travel in the United States, nearly a year after the pandemic hit demand. United said ticketed yields accelerated in the second quarter, but warned that capacity for the same period would fall at least 46% compared to 2019, hurt by fewer flights to India and Israel during the health crisis. The US airline had previously expected Q2 capacity to be down about 45%. “Business demand continues to be significantly depressed, though bookings for business travel are starting to recover,” United said. The carrier expects total revenue per available seat mile to be down about 12% in Q2 from 2019, compared to its prior outlook of down about 20%.<br/>
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Portugal’s Economy Minister said on Tuesday last week’s ruling by Europe’s second-highest court against a E1.2b rescue loan to TAP airline did not hinder negotiations on its restructuring plan and TAP could continue using that money. The Luxembourg-based General Court on Wednesday upheld Ryanair’s fight against the rescue loan TAP received in 2020 from the state, with the European Commission’s blessing, on the grounds that European regulators failed to justify the huge cash injections. “This decision that the court took for formal reasons, over a lack of adequate reasoning, does not have an immediate impact, nor does it suspend the possibility of TAP continuing to benefit from the loan,” Pedro Siza Vieira said. Rather, the minister said, the court gave the Commission a period of time to continue analysing TAP’s situation “and then take a properly reasoned decision”.<br/>Asked whether the ruling could hinder the negotiations with the European Commission over TAP restructuring plan, he said: “I think not.” The Commission has said it will study the ruling before deciding on its next steps. If Brussels rejects Lisbon’s restructuring plan for TAP, which involves a proposed 2,000 job cuts by 2022 and pay cuts of up to 25%, TAP would have to immediately repay the rescue loan, which could lead to its insolvency.<br/>