By Rajesh Kumar Singh

CHICAGO (Reuters) – United Airlines Holdings Inc. (NASDAQ) Inc. raised Monday’s revenue estimates for the current quarter despite reducing capacity. Its increase is indicative of a booming travel market.

Chicago-based carriers now anticipate total revenue per mile available to rise 23%-25% compared with the previous forecast of 17%.

The airline stated last month that it expected to earn the most quarterly revenue ever in the quarter ending June. This will help it to return to profitability.

Although the majority of the rise in bookings are driven by leisure tourists, the outlook has improved for office repoenings as well as easing border restrictions.

United stated last week that this summer will be its busiest ever since the pandemic. United estimates that nearly 5.3 Million customers will fly with United over the Fourth-of July holiday period.

United and other airlines are benefiting from strong consumer demand, as they deal with rising fuel costs that have nearly doubled in recent years.

United has also increased the fuel bill for this quarter by 17%. This is expected to grow by approximately 40% over the previous quarter.

According to the company, non-fuel operating costs are also likely to increase over previous estimates. United however expects an adjusted operational margin of 10%.

It has revised its plans to increase capacity. The company now predicts that it will have a 14% decrease in its capacity during the current quarter compared with pre-pandemic.