United Airlines Holdings (NASDAQ:UAL) projects that ticket prices for the upcoming spring and summer seasons will be somewhat lower than initially anticipated. This outlook was shared by Andrew Nocella, the airline’s Chief Commercial Officer, during a Bloomberg Television interview, which led to a 0.7% dip in United’s shares during premarket trading on Friday.
Looking ahead to summer, Japan and southern Europe are forecasted to be the airline’s top travel destinations. Nocella voiced concerns over United’s ability to meet the expected surge in travel demand to Japan, saying, “I’m not sure we’ll have enough seats.”
The airline anticipates a busy summer season with planes operating at full capacity. Although there is a slight decline in inbound travel to the U.S. from Canada and other countries, outbound travel from the U.S. is compensating and keeping demand high.
United Airlines also plans to increase its operations at JFK Airport, though expansion efforts are challenged by runway capacity limits affecting all three major airports in the New York City area, including JFK.