United chief financial officer Mike Leskinen says the carrier has trimmed unprofitable capacity from its December schedule.
United Airlines is laser focused on growing its profitability and is seeing plenty of the demand to get there – even as fuel costs create headaches across the industry.
Chief financial officer Mike Leskinen said at an investment conference hosted by Morgan Stanley on 16 September that the US carrier expects to recover 100% of fuel costs in the fourth quarter.
Like competitor American Airlines plans to do, United has trimmed some December flights as it manages capacity to target margin expansion. Much of that will come from the premiumisation push that has swept the industry in recent years and only accelerated as fuel costs surged in 2026.
“We are not flying to maximise market share; we’re flying to maximise profitability and free cash generation,” says Leskinen.
Not every carrier may be able to weather the storm, says Leskinen, echoing frequent sentiments by his boss, chief executive Scott Kirby.
“It is shocking to me how long the capital markets have patience for airlines that burn the furniture to keep the lights on,” he says. “So I do expect that to resolve itself.”
United is positioned to benefit either way, Leskinen says.
If fuel comes down soon, United is able to keep the pricing gains it has won and the market remains healthy.
But if things remain unpredictable, it could force more “structural change” across the industry, Leskinen says. That could be further capacity cuts, leaving key routes, or players leaving the market altogether.
Put simply, he says it’s “heads we win and tails we win.”
United is also seeing success in selling seat upgrades, lounge access, and other ancillary revenue drivers, something executives say is driven by investment in product upgrades.
“The most recent iteration of segmentation with a basic Polaris offer has proven that customers love our clubs,” says Leskinen.
Across the industry, airport lounges are in high-demand as airlines race to build exclusive spaces at airports as selling points for upgraded tickets and credit cards. And it’s not just the Big Three: JetBlue, Southwest and others that have historically eschewed such investments are now entering the fray.
“It’s also a secular trend in society where customers care a lot more about experience than hard product, so more of their wallet is shifting in that direction,” says Leskinen.
United hopes that airfares can catch up to the pricing levels of other travel categories, like hotels. Lodging, however, doesn’t have to worry about fuel costs.
Both American and Southwest Airlines also said at the same conference that they plan to cut capacity in the winter if costs remain high.
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