Speaking on an earnings call, United’s CEO Scott Kirby stated that the U.S. government shutdown could begin to harm airline bookings if it isn’t resolved soon.
Despite the stark warning, the CEO said so far the shutdown hasn’t impacted the carrier’s business.
“I think that at least for the first couple of weeks, people thought it was going to get resolved, so they just kind of continued business as usual,” he said. “But as time goes on, as people read headlines and say, ‘it’s not going to get resolved soon.’ People start to lose confidence in the government and the government’s ability to resolve this. And that’s going to start to impact bookings.”
Kirby’s comments follow the company’s positive earnings streak, with United’s third-quarter pre-tax earnings reaching $1.3 billion.
Kirby told investors earlier this week: “We’ve invested in customers at every price point: Seatback screens, an industry-leading mobile app, extra legroom, a lie-flat United Polaris seat, and fast, free, reliable Starlink on every plane by 2027. Our customers value the United experience, making them increasingly loyal to United. Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers, leading to economic resilience even with macro economic volatility through the first three quarters of the year and significant upside as the economy and demand are improving in the fourth quarter.”
“Customers are increasingly choosing an airline that can deliver value for them across the full travel experience, from Basic Economy to United Polaris. We are well-positioned to be the airline those brand-loyal customers choose to fly them across the U.S. and around the world,” he concluded.
United shares dropped almost 6% in premarket trading on Friday following Kirby’s comments.
By CEO NA Editorial Staff
