- Looking at the questions of determining the fate that affects the American economyThe company announced on Tuesday that United Airlines plan for multiple operating environments. In one scenario, the airline sees customer reservations even with poor economy. On the other hand, the United States stumbles in stagnation. It may be an approach that depends on other companies, given the wild fluctuations roaming in the market.
United Airlines offers you options.
Airlines 22 billion dollars on Tuesday Display What a set of “bilateral” expectations is through the criterion of guidance based on completely different views of the macroeconomic because “one consensus no longer exists,” United told the investors.
“Either the American economy remains weaker but stable, or the United States may enter into a recession,” United announced.
In the recession scenario, the company designed a percentage of a percentage of the total second to the fourth quarter, which it says will equal $ 4.50 in the profits of one share (EPS) if there is no break from fuel prices. Reducing revenues means a significant decrease in the full year amended from $ 7 to $ 9.
On the other hand, the stable scenario is more rosy with a year higher than $ 11.50 to $ 13.50. United said she was watching her reservations like a falcon, and the trends have so far been stable. If things continue in full swing, the company expects to be within the first guidance range from $ 11.50 to $ 13.50. CEO United Scott Kirby Financial Director Michael Lazkinin will discuss business with investors during Chamber call calls Wednesday.
This tactic was one novel for market monitors.
in After xThe economist and former CEO of Pimco Mohamed Al -Arian said that the step made by United shows the uncertainty that many companies feel at the present time.
“In addition to uncertainty, this highlights the importance of companies (and others) to think in terms of multiple scenarios of internal planning and not only to stick to the usual natural distribution (i.e. a very possible result and thin tails),” wrote the head of Queen’s College, Cambridge.
The market was on a Will is, no, she is the rotating ship Ride since President Trump Declare A group of new import duties on liberation day earlier this month. The announcement, which was expected, led to Selling the extremist market Because the declared measure and scale of Trump’s tariff was behind What was already priced.
The following weeks were messy and full of comment from experts about what might happen after that, even as new developments continued The markets were confused on the basis of near an hour.
Former Federal Reserve Chairman and US Treasury Secretary Janet Yellen He said The United States “will be fortunate to coordinate the recession.”
Billionaire Billionaire Associats Ray Dalio He said A combination of Trump tariffs, increased debts, and geopolitical forces can Collapse The United States “Critical Command”.
“I am worried about something worse than stagnation if it is not treated well,” Dalio said, “We are at the decision -making point and very close to the recession. NBC‘s Meet.
“The recession is two negative quarter of GDO and if there is always?
Despite the uncertainty in the next horizon, United reported profits in the first quarter of profit and the record value of $ 13.2 billion, the company Declare On Tuesday, before surrounding a chapter scheduled with investors. Travel reservations remained fixed, according to UNIDE, as Cabins increased by 17 % and international flights increase by 5 % year on an annual basis.
The company told investors: “United believes that our ability to win the customer customers of Loyal is a competitive advantage and will make United flexible in any economic environment,” the company told investors.
This story was originally shown on Fortune.com
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