On Tuesday, September 16th, Scott Kirby, CEO of United Airlines, stated that the U.S. aviation industry is facing pressure from oversupply and price cuts this year. Despite this, United Airlines has chosen to actively expand, with growth rates significantly outpacing other major airlines. Its products, network layout, and technological advantages are gaining more favor from passengers.
In an interview with CNBC on Tuesday, Kirby said, “This year will ultimately prove two things: if you are a brand loyal airline, then even in an economic downturn, you have resilience. When the economy starts to recover, our performance in the fourth quarter will show a more proactive side.”
United Airlines is set to announce its third-quarter financial results and fourth-quarter outlook in mid-October.
According to Cirium, an aviation data company, United Airlines’ domestic capacity is expected to increase by 5.7% in 2025 compared to last year, while the overall average growth rate for U.S. airlines is less than 2%. Delta Air Lines and American Airlines are projected to grow by about 3%, while Southwest Airlines is estimated to grow by 1.4%.
Kirby emphasized that United Airlines’ differentiation strategy has been effective, including providing in-flight Bluetooth connectivity, seatback screens, and its own mobile application for convenience services. He stated, “What sets us apart is that passengers choose us, I think this is one of the biggest changes in the industry. Many airlines treat air travel as a commodity.”
Regarding the U.S. low-cost airline market, he reiterated that the ultra-low-cost model is not sustainable in the U.S. and specifically mentioned Spirit Airlines, which has filed for bankruptcy protection twice in the past year. Kirby predicted that Spirit Airlines may eventually exit the market.
Kirby mentioned that the company has invested heavily in upgrading cabin facilities in recent years and has replaced approximately two-thirds of its Airbus and Boeing narrow-body aircraft cabins.
As passengers are willing to pay higher prices for more spacious and comfortable seats, major U.S. airlines are accelerating the addition of premium seats in the front rows, cabin updates, and equipping more modern seats and spacious accommodations.
Glen Hauenstein, President of Delta Air Lines, stated at a Morgan Stanley conference in California last week that over half of the company’s revenue comes from premium cabins and lucrative membership programs. Delta will offer a “record number” of premium seats next year.
He said, “We believe this trend will not stop.”