April 09--A strong U.S. dollar and lower surcharges are taking a toll on United Airlines' revenues, the company said Friday.
The Chicago-based airline said miles traveled by paying passengers in March were down 1.5 percent compared with last year. So far this year, revenue passenger miles are up 0.3 percent compared with the same period a year ago.
United said it now expects first-quarter 2016 passenger revenue to decline between 7.25 and 7.75 percent year-over-year. Last month, after February increases in passenger traffic, it forecast a drop of 6 to 8 percent.
Business customers in the energy industry have been traveling less as oil and gas prices have slumped, the airline said.
Passengers also cut back on business travel during Easter and spring break more than United expected, the company said Friday in a report on its March performance.
But there was some good news for fliers: 64.9 percent of flights arrived on-time or ahead of schedule in March, up about 6 percent year-over-year.
lzumbach@tribpub.com
