In the face of competition from low-cost carriers, United Airlines has revised its third-quarter profit forecasts downwards. Despite spending in line with forecasts, the company is experiencing a decline in revenues, particularly in the domestic market, where yield per mile flown fell by 1%. This decline was less pronounced than at Delta, which posted a 2% decrease, and United posted a 5.4% increase on flights to Europe. The Latin American market, another key sector, also saw a 7% drop in yield.

The reduction in air capacity mentioned by United could bolster profitability during the summer season. The company hopes to benefit from an improvement in the situation after mid-August, when oversupply should be reduced. With its strong presence on international routes, United could be less affected by fluctuations in demand, thanks to long-term bookings.

However, despite a certain optimism, Ferguson points out that capacity growth is still outstripping GDP growth, which could indicate that supply is still outstripping demand and that the market is potentially weak. Visibility into the future therefore remains uncertain, requiring continued monitoring of flight schedules.

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