United Airlines CEO Scott Kirby revealed that the recent outages and staffing shortages at Newark Liberty International Airport had a significant impact on the airline’s bookings and profits. The New Jersey airport has been making headlines after experiencing three technology crashes in just two weeks, causing air-traffic controllers’ radar systems to go down.
Speaking at The Wall Street Journal’s Future of Everything event, Kirby stated that the drop in bookings resulted in a decrease in the airline’s profits. The quarterly earnings for United Airlines are expected to fall in the middle of their forecast range of $3. 25 to $4. 25 per share, but Kirby believes they would have been closer to the top end if not for the chaos at Newark.
The CEO attributed the decline in bookings to a “perception” issue, assuring customers that it is safe to fly through Newark airport. He encouraged people to book with confidence and take advantage of lower ticket prices, but also expressed his wish that the prices were not lower due to the current circumstances.
Kirby acknowledged that fears about the airport’s safety have led customers to choose nearby competitors, resulting in empty seats on United flights through Newark. However, he confidently claimed that Newark will have the least travel disruptions out of the three airports in the tri-state area this summer. This is due to new regulations from the Federal Aviation Administration, which recently ordered airlines to limit their daily arrivals and departures at the airport to reduce congestion and delays.
The CEO has been advocating for these changes for a decade, and he believes further action needs to be taken by the government to update air-traffic control systems and address staffing shortages across the country. He emphasized the importance of running the system like a business.
In terms of consumer spending, Kirby stated that it seems to be holding up despite President Trump’s tariffs. The recent ruling by the US Court of International Trade to block some of the tariffs has been appealed by the Trump administration, potentially leading to a Supreme Court battle.
In other news, United announced a partnership with JetBlue Airways to link their loyalty programs, allowing members to use their points for flights operated by the other airline. This also means the return of United flights to New York’s John F. Kennedy International Airport, after the airline closed its operations there in 2022.