United Airlines expects a 2.1% capacity cut in the second quarter compared with a year earlier, tightening its guidance from its last estimate in April.
Domestic capacity will be down by 2.5% and international capacity by 1.5% during the quarter, according to an investor update on 27 June. The Chicago-based carrier expected a 1.7% to 2.7% decrease in available seat miles in its April update.
Passenger revenue per available seat mile (PRASM) is expected to increase by 0.3% to 1.3%, compared with the second quarter in 2012.
United reported that PRASM was flat to down by 1% in May, and that the figure decreased by 1% in April.
Costs per available seat mile excluding fuel, profit sharing and special items are expected to increase by 6.7% to 7.7% in the quarter. This is up from the 5.5% to 6.5% increase that was expected in April.
United expects to pay $3.04 per gallon of jet fuel including hedges during the period.
Gross capital expenditures are expected to be $630 million and net capital expenditure $450 million. Both are up from the previous guidance as a result of aircraft purchase deposits, according to the airline.
United ordered 35 Airbus A350-1000s by converting its order for 25 A350-900s and adding 10 aircraft, 20 Boeing 787-10s that it splits between 10 new and 10 conversions from its existing 787 orderbook, and 70 Embraer 175s split between 30 firm orders and 40 options during the second quarter.