United’s plan to use larger jets to control rising costs
No US airline is on a better financial trajectory than United Airlines. But investment analysts have asked whether United is spending too much money, a habit that could hurt the company if this long-rumoured economic downturn occurs sooner rather than later. But speaking Wednesday on their Q3 earnings call, United’s executives said they have a simple plan to combat cost creep. Over the next 6 years, they said, United will use bigger planes in place of smaller ones, a strategy called “increasing gauge.” Larger jets allow United to add more seats per flight. “We have large hubs in big cities across the country, and because of that, we should be the airline with the highest gauge,” United president Scott Kirby said. “But at this point, we’re not. In fact, United is 7-to-8 years behind our large competitors in gauge growth”. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-17/star/united2019s-plan-to-use-larger-jets-to-control-rising-costs
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United’s plan to use larger jets to control rising costs
No US airline is on a better financial trajectory than United Airlines. But investment analysts have asked whether United is spending too much money, a habit that could hurt the company if this long-rumoured economic downturn occurs sooner rather than later. But speaking Wednesday on their Q3 earnings call, United’s executives said they have a simple plan to combat cost creep. Over the next 6 years, they said, United will use bigger planes in place of smaller ones, a strategy called “increasing gauge.” Larger jets allow United to add more seats per flight. “We have large hubs in big cities across the country, and because of that, we should be the airline with the highest gauge,” United president Scott Kirby said. “But at this point, we’re not. In fact, United is 7-to-8 years behind our large competitors in gauge growth”. <br/>
