United Airlines Reconsiders Fleet Plans

Good morning from Skift. It’s Wednesday, January 24. Here’s what you need to know about the business of travel today.

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Episode Notes

United Airlines is taking another look at its fleet plan due to delivery delays with the Boeing 737 Max 10, writes Airlines Reporter Meghna Maharishi.

The Max 10 hasn’t been certified by the Federal Aviation Administration yet. And given the Max 9 groundings, United executives said during the airline’s fourth-quarter earnings call on Tuesday that it’s unrealistic to expect deliveries will be on time. Maharishi notes United is focused on the Airbus A350. 

Meanwhile, United posted net income of $600 million during the fourth quarter. However, the Chicago-based carrier said Monday it expects a first-quarter loss due to the grounding of the Max 9 following a blowout aboard an Alaska Airlines flight earlier this month.  

Next, Expedia CEO Peter Kern is urging hotel owners to clamp down on rogue wholesale rates, reports Executive Editor Sean O’Neill. 

Kern said at the Americas Lodging Investment Summit this week that hotels aren’t doing enough to keep their wholesale rates off of smaller retail travel sites. While hotels have long set aside certain rooms at discounted rates for contracted partners, Kern argued that some agencies are breaking the rules. 

Hotels may not be quick to respond because they benefit when rooms are full and it takes time and money to clamp down.

Finally, Marriott CEO Anthony Capuano faces major challenges at the helm of the world’s largest hotel group, but he remains optimistic about the company’s future, reports Senior Hospitality Editor Sean O’Neill. 

Capuano said during an interview with Skift that he doesn’t see Marriott’s growth slowing down. Marriott has more than doubled its room count in the last 10 years, and Capuano said it’s targeting Europe, China and the Middle East as areas for growth. 

While O’Neill writes technology has changed faster than Marriott’s software has, Capuano expressed optimism the company’s tech transformation will be complete in the near future. Marriott will revamp its website and app to make comparison-shopping for hotels easier, among other updates.