Menu
Sign In Search Podcasts Libraries Charts People & Topics Add Podcast API Blog Pricing

Scott Kirby

๐Ÿ‘ค Speaker
185 total appearances

Appearances Over Time

Podcast Appearances

Bloomberg Talks
United Airlines CEO Talks Travel Demand

The biggest change we're going to make for next year, I think, is actually to reshape the seasonality of the year.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

One of the things that's happened that's good for our business is this third quarter peak has extended into the fourth quarter.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

And it's made the fourth quarter actually a better quarter from a margin perspective than the third quarter.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

And

Bloomberg Talks
United Airlines CEO Talks Travel Demand

What we think is, as that particular international demand has extended to the fourth quarter, there's an opportunity for us to actually fly less in the peak in the third quarter, which will be good for our RASM.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

But it turns out it's going to actually be good for our cost structure, too, because we have to build staffing and infrastructure, everything up to that peak for six weeks of the peak summer.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

And so next year, we're going to actually try to reshape our schedule some to lower the peak and let the demand spread across more of the year.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

You know, this year, prices have come down, as we talked about, just, you know, as there was macro volatility, at least for aviation.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

I do expect them to normalize next year.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

And I think just over time that you should expect to see airfares grow consistent with inflation is likely what's going to happen over time.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

Yeah.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

Well, our people are the best in the world and they deserve industry leading contracts.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

Every time we sign a new contract with one of our union groups, they expect and deserve and will be paid at the top of the industry.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

So that's built into our forecast.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

That's built into everything that we're doing.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

One of the great things that we're doing, though, at United is I think we're the best in the world at managing our real core costs and being more efficient at the airline.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

We've invested heavily in

Bloomberg Talks
United Airlines CEO Talks Travel Demand

in technology to helps us run the airline better.

Bloomberg Talks
United Airlines CEO Talks Travel Demand

But like you look at the third quarter, you know, there are a number of airlines that have talked about missing their, their cost guidance because of storms and there were storms in the quarter, but we've invested so heavily in our recovery tools that we had, you

Bloomberg Talks
United Airlines CEO Talks Travel Demand

best in the industry, cost performance.