United sees smaller unit revenue decline as summer demand picks up

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/>