Business and leisure trips show signs of a truck after a weak start of the year.
Scott Kirby, executive director of United Airlines, told Los Angeles Times that, with some ease of uncertainty about tariffs, economics and global politics, more people and companies are gaining confidence to return to the road.
The airline industry is perhaps the best real -time indicator of the US economy, since traveling is one of the first things that companies and consumers reduce when they feel difficult times ahead.
However, since June, United orders suggest that there is more certainty since consumers know what to expect and reserve demand since the day of work has increased, Kirby said.
In an interview, Kirby hit the ultra -cost transport airlines, discussed artificial intelligence and explained why he believes that the 2028 Olympic Games may not be great news for the airline industry.
The conversation has been edited by length and clarity.
How are United Airlines operations in Los Angeles?
In Los Angeles, we have 21 doors. We have about 140 flights per day here. I think it is our higher door use airport. We would love to have more flights, but there are not enough doors in Los Angeles. Then the restriction in Los Angeles is Gates.
Our restriction to growth in angels are the doors. Essentially, if we want to add a new route, we have to cancel our current route. We just don't have enough doors.
In California, Spirit has reduced the amount of airports it serves. What is the problem with the low -cost airline model?
Ultra low cost, I don't think they work. Mainly because your business model was based on bait and change with customers. It is based on a low headline and it is really difficult to find out what all other rates will be. Then you appear at the airport and charge you $ 99.
When your business model is based on fucking the customer, that business model will not work in any industry. It did not work here, and I never thought it would work and now that is what happened.
Do people don't want cheaper flights?
People want good value. They get a good value in United. They do not want a cheap flight that is delayed, that is canceled or where they cannot trust the airline.
It has been a difficult summer for the tourist traffic of some countries. What have you seen?
At the end of June, it was as if a light switch was overturned. It had been very slow to start the year, but the demand has returned. It has been even stronger after Labor Day.
I think the economy is in better form of what most people think. Many of the economic statistics are following. We are a good indicator in real time. The economy was weak to start the year, during the first five, six months, but it is much stronger to the third quarter.
There was a great fall in Canadian trips. There was a fall in European trips. Those who touched in May, and are still low, but are not low. Will return.
How have you affected the immigration rags?
Those are so tactical that they are not large enough to see in our macro statistics. I only look at the general demand, and the general demand is strong. Maybe it would be a little stronger without that.
What is United to help Los Angeles travel for the Olympic Games?
The Olympic Games, curiously for airlines, lead to lower demand. When the Olympic Games arrive in the city, business trips close.
We are going to add flights and we will be a participant. It is not a big problem, but in reality it is negative net for airlines when the Olympic Games arrive in the city.
How is United using ia?
There are many tactical places, such as call centers or reading contracts, where it works. But AI is not good in everything. I am in the camp that believes that AI in many industries is more evolutionary than revolutionary.
Our digital technology team thinks that they are 30% more efficient in much of the coding work. We are testing that you use all the data we have to tell customers what is happening with flights. To be able to make uncertainty for customers, it is an exciting example.
