United Airlines stock price increased by 4% during Thursday’s trading session because the airline predicted better travel demand for the third quarter based on improved macroeconomic stability and rising business travel numbers.
CEO Scott Kirby stated that travel conditions have improved since early 2025 which enables the company to feel confident about reaching its year-end targets. United Airlines predicts a six-point increase in total demand for the current quarter while business travel bookings show double-digit growth.
The positive outlook from United Airlines created a positive impact on other airline companies. Delta Air Lines and American Airlines both rose 3% in early trading. United Airlines announced that industry capacity reductions beginning in mid-August will help maintain stable airfares and protect profit margins.
United Airlines joined multiple competitors in removing their 2025 guidance because of rising costs and presidential budget cuts and trade tensions. The positive booking data has led airlines to modify their market predictions. Delta Air Lines restored its complete forecast for the current year during the previous week.
Premium travel continues to perform well because it balances out the decline in economy fare sales. The Citi analysts predict United Airlines will achieve its long-term targets despite current operational difficulties at its Newark hub.
CEO Scott Kirby indicated to CNBC that airlines will benefit from strong demand and supply reduction during the second half of the year.
