“United Airlines enjoyed an “I told you so” moment with its fourth-quarter revenue results, as capacity growth plans that rattled analysts early last year appeared to pay off.
United in prior years had abandoned regional service from its hubs in favor of taking on American Airlines and Delta on their key routes. The carrier’s more recent strategy has grown those routes. United introduced 93 routes in 2018, more than any other U.S. airline, and capacity for the full year rose 4.9 percent year over year. Those plans had concerned investors, worrying that they would lead to lower fares. However, United’s traffic growth, at 6.4 percent, outpaced capacity growth and did not dilute unit revenue or yield growth. “Not all capacity growth is created equal, and I think we proved that this year,” CEO Oscar Munoz said on United’s earnings call.
Corporate business growth contributed. Chief commercial officer and EVP Andrew Nocella said corporate revenue growth outpaced the 11 percent overall revenue growth in the fourth quarter. Despite the volatile stock market and the ongoing government shutdown, corporate demand has started off strong this year, as well, said United president Scott Kirby.”
Read the rest of the article via United’s Capacity Growth Plan Bears Fruit: Business Travel News
For more travel related news, check out our travel news section.
By the way, if you are interested in more travel tips and travel advice, you might be like these great articles:
- 147 Business Travel Tips – the ultimate list of road warrior tips & tricks
- How to get over jet lag while you travel – 11 Tips every traveler needs to know
- The 7 Habits of the Healthy Business Traveler: How to Stay Healthy While Traveling for Business
- 11 Packing Tips Every Traveler Needs to Know