United Airlines CEO on Expansion Plans, Airfares, Demand

Summary

United Airlines CEO Scott Kirby discusses the carrier's largest international expansion with ten new routes across Europe and Asia, including new Japan destinations. He says travel demand remains strong across premium and economy, sees the US economy as stable but tentative, and expects United can offset higher fuel costs with fare increases. Kirby also expects jet fuel prices to trend down from current levels but remain elevated for at least another year.

• United announces ten new routes in Europe and Asia and expects international growth to outpace domestic growth.
• Kirby says demand is strong across premium, economy, business, and leisure with no major cracks.
• The US economy is characterized as stable but tentative around prices and interest rates.
• United expects to offset higher oil and jet fuel costs through airfare increases.
• Oil and jet fuel are expected to remain elevated for at least another year, though jet fuel may trend down.
• Japan is described as hot for travel demand because of the weak yen, with new Sapporo and Okinawa routes.
• Middle East and Canada travel disruptions are viewed as mostly temporary blips.
• United expects most new routes to be profitable and does not plan to cut domestic routes.