United Airlines’ Impressive Growth and International Expansion Pose a Threat to American Airlines

In a remarkable display of growth, United Airlines continues to expand its international network, positioning itself as a potential rival to American Airlines’ top spot in the United States.

Based at Chicago O’Hare International Airport (ORD), United Airlines achieved a remarkable pre-tax margin of 9.8% in Q2 2023, with H1 2023 reaching an impressive 15.3%. Despite facing operational challenges in June 2023, the airline still managed to secure a net income of $800 million for the six-month period (Q2 2023: $1.07 billion).

Scott Kirby, United Airlines’ CEO, praised the team’s resilience in navigating the unprecedented events and emphasized the success of the United Next strategy, describing it as the right approach at the right time. The United Next strategy focuses on upgauging the airline, enhancing connectivity at mid-continent hubs, and expanding its industry-leading global network to provide enhanced customer service and benefits for employees and stakeholders.

With its sights set on increasing its international flight network, United Airlines recently announced a significant expansion of its transpacific routes. Commencing on July 18, 2023, the airline unveiled plans for flights to several Pacific destinations, including Manila, Hong Kong, Taipei, and Tokyo (Narita International Airport). This expansion builds upon previous growth initiatives, which saw United Airlines increase flights to Australia and New Zealand by 40% during the 2023 winter season.

Notably, United Airlines’ capacity grew by an impressive 17.5% compared to Q2 2022, with Available Seat Miles (ASM) reaching 73.5 billion for the quarter. Demand for the airline’s flights, measured by Revenue Passenger Miles (RPM), reached 63.5 billion in Q2 2023, up from 65.7 billion in Q1 2023.

United Airlines’ mainline fleet also witnessed growth, increasing from 891 to 909 aircraft between Q1 and Q2 2023, with plans to have 957 aircraft in its fleet by year-end. In comparison, American Airlines’ ASM was 69.6 billion and RPM was 60.02 billion in Q2 2023, with the carrier expecting to add 11 aircraft to reach a fleet of 955 by the end of the year.

United Airlines’ ambitious growth strategy is reflected in its significant aircraft orders, with a total of 648 aircraft on order, compared to American Airlines’ 167 aircraft, according to data from ch-aviation.com.

As United Airlines continues its trajectory of growth and international expansion, American Airlines faces increasing competition and the possibility of being displaced from its leading position in the United States aviation market.