Skift Take
United President Scott Kirby and Chief Commericial Officer Andrew Nocella, who worked together at US Airways and American Airlines, deserve credit for the airline's turnaround. Then again, when they arrived United was a broken company, so there was probably only one way to go — up.
If you're looking for a cheap spring or summer airfare on United Airlines, you may not find it — at least not yet.
United unveiled a new revenue management system last year, hoping it could use fresh technology to wring extra money from customers. And it has worked, executives said Wednesday on their fourth quarter earnings call, helping the airline sell fewer "lower-yield" tickets far in advance, so it can set aside seats for business customers.
The new system called Gemini, championed by United President Scott Kirby, is one of a series of new-revenue producing strategies boosting profits for United, which has shaken off its post-merger malaise and delighted investors over the past year with its financial performance.
United said it earned net income of $2.1 billion last year, roughly the same as in 2017, even though fuel costs rose almost 35 percent. And while fourth quarter net profit fell about 20 percent year-over-year, passenger revenue per available seat mile, or unit revenue, rose 5 percent, at the high edge of the airline's guide, sending the stock soaring.
This year, United may have challenges. Though it reported on Wednesday that early-year bookings have been strong, United faces an uncertain global economy, and as the largest U.S.
