Why US air travel could face 'real trouble' by the end of Q3
United Airlines (UAL) stock is climbing after posting a first quarter profit and a record $13.2 billion in revenue. Boyd Group International president Mike Boyd joins Morning Brief to discuss United's forward-thinking strategy and the broader challenges facing the US air transportation system.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
United Airlines shares are on the move this morning higher after swinging to a profit in the first quarter, with revenue hitting a record high of $13.2 billion.
The airline also taking an unusual approach to guidance, issuing 2 2025 profit forecasts.
One, if the current environment remains stable, and another if the US economy enters a recession.
Joining us now, we've got Mike Boyd, Boyd International Group president, great.
To have you here with us.
So how are you looking at the United results right now and, and the reality of these two different results that they're forecasting to the street?
Well, this is very typical of United.
There's so much ahead of the curve compared to so much of the other industry because they see what's happening and they're trying to react to it.
And I think this United next program they're putting together, this is why United is going to have another good, good quarter coming up.
But the real thing that they're bringing.
Up here is we have an air transportation system in the United States that is liable to be in real trouble by the end of the 3rd quarter, 4th quarter, start of the 4th quarter, because we have another whole sector called the ULCC sector like Frontier and Spirit.
They've got way too many airplanes.
They've got a lot of nomad capacity, and they're going to be rumbling around, and I think United Airlines sees that and they're getting prepared for that.
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