Trump’s trade conflict: United Airlines with two forecasts for fear of recession

For the US airline United Airlines, the economic uncertainty after Donald Trump’s customs circuit is so great that she has made two forecasts for the current year. One of them assumes a recession in the United States. Investors rewarded the step: the stock temporarily increased by around seven percent in post -market trade.

There is no longer any unanimous opinion on future economic development, United justified the unusual step. That is why you have to plan for a weaker but stable US economy as well as for recession. For the latter case of a shrinking economy, United expects a profit of seven to nine dollars per share. If the economy remains stable, it may be $ 11.50 to $ 13.50 per share. Some US economists fear that the high import duties proclaimed by Donald Trump could fuel the US economy.

From the third quarter, the capacities on flights within the United States are to be reduced by four percent, United announced.

The United Passenger number worldwide rose by 3.8 percent to 40.8 million in the first quarter of the year. Sales grew by 5.4 percent to a good $ 13.2 billion (around 11.7 billion euros) and thus roughly met the average expectations of the analysts. The bottom line was that there was a profit of $ 387 million after red numbers of $ 124 million a year ago.