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.
The airline achieved record revenue on the Sunday after Thanksgiving. Chief Commercial Officer Andrew Nocella noted that their network remains strong under the ‘United Next’ plan. CFO Mike Leskinen reported plans for capital expenditures of less than $7 billion with deliveries of 81 aircraft in 2025.
Regarding Boeing’s 737 MAX 10, Leskinen said, “Boeing is starting to make some real progress in improving their business. We are becoming more bullish on the [737 MAX 10].”
Kirby also commented on potential changes under President Donald Trump’s administration. He mentioned discussions with Sean Duffy, Transportation Secretary, focused on improving air traffic control systems. Kirby expressed confidence that this administration would remove regulatory burdens and expand economic opportunities.
The earnings call followed a successful year for United Airlines with a net income of $3.1 billion and revenues reaching $57 billion in 2024. The airline carried a record-breaking number of passengers last year and anticipates continued demand growth into 2025.
