United Airlines’ Focus on Brand Loyalty Amid Government Shutdown
United Airlines, led by CEO Scott Kirby, is doubling down on brand loyalty as a key strategy to drive revenue growth, despite the ongoing government shutdown. In the company’s third-quarter earnings call, Kirby expressed concerns about the potential impact of the shutdown on travel demand, but remained optimistic about the airline’s prospects. Photo by Chip Somodevilla/Getty Images
According to Kirby, the airline’s cancellation rates and on-time performance have remained steady so far, despite the shutdown. However, he warned that a prolonged shutdown would eventually take a toll on the airline’s operations. “Every day that goes by, the risk to the U.S. economy grows. I hope we will avoid an unforced error here,” he said.
Premium Offerings and Loyalty Programs
United and Delta, the nation’s two largest airlines by market capitalization, are well-positioned to weather potential turbulence due to their focus on premium seats and loyalty programs. Between July and September, United reported $15.2 billion in revenue, up 2.6 percent year-over-year, with premium cabin revenue rising 6 percent and loyalty program revenue jumping 9 percent. The company expects to post record-high operating revenue in the final quarter of 2025, driven by its loyalty-driven momentum.
Delta has also seen success with its pivot to luxury, reporting better-than-expected quarterly revenue and profit earlier this month. The airline expects its premium cabins to surpass economy-class sales for the first time next year. United plans to invest over $1 billion next year in enhancing its customer experience, including adding more seatback screens and extra legroom, increasing food spending by 25 percent, and equipping its entire fleet with SpaceX’s Starlink wifi by 2027.
Kirby believes that United’s success reflects a fundamental shift in traveler behavior, with loyalty and brand differentiation becoming the new battleground. “What we’ve proven, and continue to prove in the last few years, is that it is possible to transform into a brand-loyal airline,” he said. For more information, visit Here
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