As the resurgence in air travel booms, United Airlines report higher revenue in the second quarter.
The airline is planning to revamp to meet flying growing demand. The airlines were one of the most battered sectors during the pandemic. However, the Chicago-based airline is expecting growth in pre-tax in the third and fourth quarters and is planning to revamp the airline due to rising flying demand.
Other air travel companies like American Airlines and Delta Air Lines have also seen rising bookings and improved financial results since the last week.
The revenue of United Airlines was down by more than 50% in the same quarter of last year but now is up nearly 70% in the same quarter this year due to the rollout of covid-19 vaccines this spring, travel destinations reopened, and as customers returned to air travel. However, United Airlines is bearing a loss of $434 million for the sixth consecutive quarter.
United said the airline’s capacity in the current quarter would be down by 26% as it is flying shorter routes than usual and using smaller planes. United Airlines said the fuel prices are also increased, which is 67% more than a year ago. However, as the pandemic restrictions have been removed and vaccines have been rolled out, the airline has reported a surge in flight bookings after spring.
United Airlines is confident about the demand and recovery. The airline in the last month said it plans to buy Airbus and 270 Boing jets which have been the largest aircraft order ever. The new narrow-body airplanes will replace older planes in the coming years.