Combined with a broad sense of bank fragility in the face of rising interest rates, alongside a concern that we’re late in the economic cycle and potentially headed into recession, United’s announcement worried some observers that it was a sign that consumer spending was tightening alongside shrinking household balance sheets.
But what changed at United? They cite some booking softness earlier in the year. And they made a decision to accrue costs related to a new pilot contract into the first quarter for their projections. Isn’t that… a little weird?