United Airlines President on Turning Skeptics Into Believers
Skift Take
Not everyone likes Scott Kirby, because he has a habit of speaking his mind, whether his opinions are popular or not. But there's little doubt about his track record. The man knows how to increase an airline's revenue. He's done it at America West, US Airways, American, and now United.
In January, United Airlines President Scott Kirby told investment analysts news many didn't want to hear: The airline would grow capacity significantly over three years to regain "natural share" it lost under previous management, which had sought to shrink the airline to better profitability.
Analysts were spooked for simple economic reasons. By adding 4-6 percent capacity in 2018, 2019 and 2020 — primarily from Houston, Chicago, and Denver — United would add more seats into the market. Greater supply generally leads to lower fares.
Kirby, 51, didn't care. He was hired in August 2016 from American Airlines to bring swagger back to United. As Hunter Keay of Wolfe Research put in a note, "Arguably, United has no choice but to either shrink drastically or to pursue this path, and Scott Kirby wasn’t hired to shrink anything.”
United's stock fell 18 percent in two days. Some analysts questioned whether United had made the right decision, saying they feared American Airline
