Scott Kirby, CEO of United Airlines, speaks through the WSJ’s Way forward for Every little thing 2025 on the Glasshouse on May 29, 2025 in Recent York City.
Michael M. Santiago | Getty Images
NEWARK, Recent Jersey — An oversupply of flights forced airlines to chop fares this yr and pushed carriers to cut back their growth plans.
United Airlines‘ expansion, nonetheless, is outpacing its large airline rivals, a plan CEO Scott Kirby told CNBC is paying off due to company’s product, network and technology, like onboard amenities comparable to Bluetooth connectivity, seat-back screens and its app.
“This yr goes to wind up demonstrating two things: If you happen to’re a brand loyal airline, you are resilient, even in a downturn,” Kirby said in an interview Tuesday, referring to a customer pullback earlier this yr, when consumers weighed an onslaught of on-again, off-again tariffs. “And I believe our fourth-quarter results are going to show the upside when the economy starts to get better.”
United will report third-quarter results and supply its fourth-quarter outlook in mid-October.
United is ready to grow domestic U.S. capability 5.7% in 2025 from last yr, in line with aviation data firm Cirium. On average, U.S. airlines are expanding just shy of two%, with Delta Air Lines and American Airlines domestic growth up about 3%, and Southwest Airlines increasing 1.4% from 2024, Cirium data show.
“We’re just a unique place because customers are selecting us, and I believe that is one in every of the largest changes within the industry,” Kirby said. “So many airlines considered air travel as a commodity.”
Kirby reiterated his view that the ultra-discount model within the U.S. is not working, pointing to struggling Spirit Airlines, which filed for Chapter 11 bankruptcy protection for the second time in lower than a yr last month. At an industry conference last week in Long Beach, California, Kirby said he expected Spirit to exit of business, saying “I’m good at math.”
Kirby spoke to CNBC on Tuesday on the airline’s hangar at Newark Liberty International Airport in Recent Jersey, where in June 2021, United unveiled latest interiors for its fleet of narrow-body Airbus and Boeing planes. Kirby said United is about two-thirds of the way in which through its plan to outfit those planes with the brand new cabins.
U.S. airlines have raced to update cabins with more modern seating in addition to more spacious seats on the front of the airplane as customers proceed to pay up for more room on board to the tune of sometimes 10 times or more the fare of a typical economy seat.
Delta’s president, Glen Hauenstein, said at a Morgan Stanley conference in California last week that “well over” half of the carrier’s revenue comes from outside of the most important cabin, including its lucrative loyalty program, and that next yr, Delta will offer a “record number” of premium seats.
“We see no stopping of that,” Hauenstein said.
