United Airlines set a record as it carried 44.4 million passengers — the highest for any second quarter in its history, the company said Thursday (July 18).
“We’re running the best operation in our history,” United Airlines CEO Scott Kirby said during the earnings call for the quarter ended June 30. “We’ve now led the industry in domestic growth for three straight years. That cannot happen by accident.”
Driven by an 8.3% increase in capacity compared to the same period last year, the airline reported a 5.7% rise in total operating revenue, reaching $15.0 billion.
Throughout the quarter, United Airlines made strides in enhancing customer experience and operational efficiency. The introduction of Kinective Media — a pioneering platform leveraging travel behavior insights for personalized advertising — illustrates the airline’s commitment to innovation in customer engagement. Additionally, expansions in TSA PreCheck Touchless ID technology and the launch of new digital features like automated seat preferences have further elevated the passenger experience.
United Airlines has positioned itself for a pivotal industry shift with anticipated cuts in domestic capacity scheduled for mid-August, a strategic move recently confirmed by several U.S. carriers. This adjustment, expected to reduce industry-wide capacity growth rates by approximately 3 points, marks a crucial turning point for United as it navigates through challenging market dynamics.
For United Airlines, it has capitalized on three key revenue streams that have enhanced its performance amid industry headwinds. Premium revenue surged 8.5% year-over-year in the second quarter, Basic Economy revenue saw a 38% increase, and the airline strengthened its market share among frequent domestic travelers compared to the previous year.
“Our strong revenue diversity across premium customers, Basic Economy segments, and frequent domestic travelers, complemented by our top-ranked loyalty program and exceptional customer service, has elevated our margins to a leading position in the industry,” Kirby said.
Looking ahead, he noted, “Several airlines are now scaling back on unprofitable capacity, and we anticipate achieving top-tier unit revenue performance among our largest competitors in the latter part of the third quarter. United has long anticipated the adjustment in industry-wide domestic capacity, and it’s evident that this pivotal moment is just 30 days away.”
Compared to the same quarter last year, the number of revenue passengers was up 5.8%, the number of scheduled miles flown by revenue passengers was up 5.5% and the number of seats available for passengers multiplied by the number of scheduled miles those seats are flown was up 8.3%, United Airlines said in a Thursday (July 18) press release.
The United Airlines mobile app remains the most popular among airline apps, with more than 89% of customers engaging digitally on their day of travel. A new seat preference feature has been introduced, automatically reseating customers when their preferred seat becomes available, benefiting over 30% of those who save their seating preferences. In the latest quarter, 47% of passengers used United’s automated rebooking services or self-service options, reflecting a 7-point increase compared to the previous year.
