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During United Airlines' earnings call, executives discussed the company's progress in 2024 towards achieving double-digit pre-tax margins. CEO Scott Kirby attributed this success to the "United Next" strategy. The executives also addressed industry challenges, including FAA staffing issues and Boeing's efforts to certify the 737 MAX 10.
Kirby highlighted structural changes affecting the airline industry, noting that "widebody supply, both airframe and engine, is even more challenging than narrowbody." He expressed skepticism about ultra-low-cost carriers growing significantly in the current environment. According to Kirby, "Cost convergence has been the most impactful in the big cities," making it difficult for low-cost carriers to operate profitably in major hubs like New York, Chicago, or Los Angeles due to pricing policies by local governments.
Despite optimism about future profitability, United faces external challenges such as aircraft delivery delays. President Brett Hart acknowledged ongoing staffing issues at the FAA, particularly among air traffic controllers. "In 2024, even on clear blue sky days, 66% of United’s delays were driven by ATC challenges in technology and staffing," Hart stated.
