United Airlines continues to face unit revenue pressure amidst record earnings and margin expansion

United Airlines is declining to offer a timeframe of when its sagging unit revenues will improve, but believes during 4Q2015 it will start to lap some of the drivers of its unit revenue decline that occurred in 2Q2015 and continues in 3Q2015 - the appreciation of the USD against many foreign currencies and lower fuel surcharges.

Although United Airlines' projected domestic unit revenue decline for 3Q2015 is less than 2Q2015, it appears that the pricing pressure it and other US airlines are facing the domestic market shows no signs of waning. Additionally, United faces challenges in its corporate unit revenues from the oil and gas sector, which is weaker due to lower energy prices.

As it continues to face pressure in both domestic and international markets, United has trimmed its 2H2015 capacity growth by a half point, which will result in consolidated capacity growth of 1% to 1.5% in 2015. It is planning 4Q2015 cuts in some of its weaker regions - oil industry routes, Brazil and the trans-Atlantic.