United Airlines’ corporate revenue declined about 5 percent
year over year during the second quarter as the carrier continues to see
significant travel cutbacks from the energy sector.
Revenue from customers in the oil- and gas-related
industries declined about 30 percent year over year, a larger decline than the
carrier saw in the
previous quarter, United vice chairman and chief revenue officer Jim
Compton said during the company’s second-quarter earnings call on Thursday. The
decline from that sector likely has leveled out, he added.
“With the non-oil companies, we’re pleased with our
performance,” Compton said. “There’s been a little softening, as GDP
forecasting has come down, but demand is solid in the non-oil area.”
Not counting the energy sector, United’s corporate revenue
declined 2 percent year over year during the second quarter, but traffic was
up, he said.
United announced it is cutting back on capacity growth in
light of that and a competitive pricing environment. It plans to cut capacity
in core energy markets by 9 percent in the third quarter and 8 percent in the
fourth, Compton said. Additionally, it is cutting back on capacity to both
Brazil and on transatlantic routes in the fourth quarter, he said.
During the second quarter, consolidated capacity increased
2.3 percent year over year as traffic increased 0.7 percent, causing United’s
load factor to decline 1.4 points to 83.9 percent.
United’s net income set a quarterly record, $1.2 billion,
compared with $789 million in the second quarter of 2014. While total passenger
revenue declined 3.4 percent year over year to $8.7 billion, operating expenses
were down 10.1 percent year over year.