United Airlines’ Profits Up 27% Due to High Travel Demand

Despite a slew of industry headwinds eating into airlines’ profits during what has otherwise been a record summer, United Airlines had a strong second quarter. 

United reported around a 27% increase in profits for the second quarter, buoyed by demand for international travel, a surge in corporate travel, along with increases in revenues for basic economy and premium tickets. 

The carrier had an operating revenue of nearly $15 billion for the second quarter, a nearly 6% increase from the same time last year. 

United's Strategy to Cater to Every Traveler

Part of United’s strategy to reach record profitability has been catering to every traveler. To do so, the airline has expanded its basic economy and premium offerings. United has been bullish on basic economy in recent years, hoping to sway travelers away from ultra-low-cost carriers. 

CEO Scott Kirby has also been critical of the ultra-low-cost business model, most recently saying on “The Air Show” that he thinks such carriers “are going out of business.”

This strategy seems to be working for United. Basic economy revenues were up 38% in the second quarter and premium revenues grew 8.5%. 

United and Delta Stand Out

Delta and United have both reported record revenues and profits since the pandemic, generating the majority of profits in the U.S. airline industry. Both carriers have benefitted from premium products, a vast network of international routes and lucrative loyalty programs. 

Delta also reported relatively strong second-quarter results last week, but fell short of Wall Street expectations due to a surplus in domestic seating dampening their profits. United said it was expecting U.S. airlines to significantly reduce domestic capacity this summer.