United Airlines cuts capacity forecast, flags cost pressure amid Omicron
United Airlines Holdings on Wednesday trimmed its capacity forecast and warned of higher costs, after posting a smaller-than-expected fourth-quarter loss, citing turbulence from the Omicron coronavirus variant.
The Chicago-based carrier said the latest wave of the health crisis has depressed near-term demand even as bookings for the spring and beyond remain strong.
United said its priority is to match capacity with demand.
As a result, its 2022 capacity is now projected to be lower than in 2019, instead of growing 5% as estimated earlier.
It expects to restore 82% to 84% of pre-pandemic capacity in the quarter through March, with revenue recovering to just 75% to 80% of 2019 levels.
