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United Airlines CEO Scott Kirby has significantly evolved from his earlier reputation as a cost-cutting executive. Previously known for his strict, data-driven approach at US Airways and American Airlines, Kirby has fostered a new culture at United that emphasizes improving customer experience while maintaining financial stability.

During United’s third-quarter earnings call, Kirby cited their commitment to enhancing the customer experience as the main driver of their financial outperformance. He highlighted a multiyear strategy involving significant product investments aimed at better serving their passengers. This marks a substantial shift from his earlier approach, which was more focused on cost-cutting measures, such as when he tried to charge for water at US Airways.

Kirby’s new approach includes bold initiatives, like the launch of flights to Nuuk, Greenland, a move he described as low-risk but beneficial for the airline’s brand and customer engagement. United’s focus on customer segments is reflected in the airline’s reported profitability across all hubs and regions — a rarity in the industry. The airline has also seen growth in its MileagePlus loyalty program, with membership up by 13% and co-brand card spend increasing by 9%.

Despite these improvements, United still employs a segmented customer strategy that includes an increase in basic economy volumes by 21%. This approach allows the airline to offer lower fares to price-sensitive customers while maintaining higher fares for business and premium travelers.

Financially, United announced $1.5 billion in stock buybacks, a move predicted by industry analysts. While some, including the flight attendants' union, argue that these funds should benefit employees, airline management is confident in the long-term cash generation capabilities of their business. They plan significant capital expenditures of $6.5 billion this year and over $7 billion next year.

With a clear strategy for growth and profitability, United Airlines under Scott Kirby’s leadership is making strides that differentiate it from its competitors, albeit with inherent risks related to fleet plans and potential rising labor costs.