United Airlines pledges margin growth as it confronts unit revenue headwinds in 2Q2015

United Airlines is bracing for a unit revenue decline during 2Q2015 that could reach the mid single digits as internal and external factors are coalescing to drag down the company's performance in that metric.

But United maintains that some drivers of the decline are both earnings and margin accretive, and stresses it ultimately makes decisions to maximise margins and return on invested capital (ROIC). To demonstrate that philosophy it has undertaken several fleet changes that include deploying 777-200 onto high frequency domestic hub-to-hub routes.

To mitigate some of the pressure it is feeling from the strengthening USD and competitive capacity actions, United has shaved a half-point off of its projected 2015 capacity growth and now expects a 1% to 2% expansion for the year as it works to shore up margins and sustain profitability.