United and Delta Lower Earnings Forecasts, Cut Summer Schedules Amid Demand Slump

United Airlines and Delta Air Lines have both revised their earnings forecasts downward and announced cuts to their summer schedules, citing weaker-than-expected demand. The move signals growing concern about travel spending as airlines brace for a softer market in the coming months.

What’s Happening?

As reported by Business Insider, Delta Air Lines reduced its first-quarter earnings projection to $0.30–$0.50 per share, down from the previous estimate of $0.70–$1.00. The airline also lowered its expected revenue growth to 3%–4%, compared to its earlier forecast of 7%–9%. Delta attributes this shift to declining consumer confidence and a weaker corporate travel market.

United Airlines, facing similar headwinds, reported a sharp drop in government-related travel bookings—down by 50%—which has further impacted the domestic leisure market. The airline expects earnings to come in at the lower end of its initial guidance and has announced reductions in government and transborder flights, including potential overnight service cuts.

Why the Slowdown?

Both airlines point to multiple factors contributing to the slump: economic uncertainty, shifting travel priorities, and concerns about discretionary spending. While the post-pandemic travel boom drove strong revenue in 2023 and early 2024, that momentum appears to be slowing.

For Delta, softer demand has led to concerns about pricing power. The airline is now focusing on reducing excess capacity after the peak summer season to avoid aggressive fare discounting. United is also considering strategic adjustments to match supply with demand.

What This Means for Airline Staff and Passriders

For airline employees and standby travelers, schedule reductions could lead to fewer available flights and less flexibility, particularly for nonrev travel on international and government-heavy routes. With airlines trimming their networks to protect profitability, securing last-minute seats could become trickier, especially as premium bookings show signs of softening.

That said, if demand remains weak, airlines might introduce fare sales to stimulate travel—a double-edged sword for passriders. More empty seats could increase chances of clearing, but deep discounting could also mean more paying passengers snapping up available inventory.

Looking Ahead

The key question now is whether this demand dip is temporary or a sign of longer-term headwinds for the industry. If economic uncertainty persists, airlines may continue adjusting their forecasts and schedules well beyond summer. For now, both United and Delta are taking a cautious approach, keeping an eye on demand trends as they navigate a shifting market.

Do you foresee this being a long-term problem for the major US airlines?