Scott Kirby
๐ค SpeakerAppearances Over Time
Podcast Appearances
The biggest change we're going to make for next year, I think, is actually to reshape the seasonality of the year.
One of the things that's happened that's good for our business is this third quarter peak has extended into the fourth quarter.
And it's made the fourth quarter actually a better quarter from a margin perspective than the third quarter.
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.
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.
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.
You know, this year, prices have come down, as we talked about, just, you know, as there was macro volatility, at least for aviation.
I do expect them to normalize next year.
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.
Well, our people are the best in the world and they deserve industry leading contracts.
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.
So that's built into our forecast.
That's built into everything that we're doing.
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.
We've invested heavily in
in technology to helps us run the airline better.
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
best in the industry, cost performance.