UNITED AIRLINES is expecting to post strong growth this year, despite challenging conditions in the North American market, on the back of its success in international routes.
The airline reported a second-quarter net income of $469 million, an increase of 38 per cent year-on-year. It generated $10 billion of revenue in the quarter, its highest ever Q2 revenue result.
“With oil prices at historic highs and growth in our key markets including North America staying relatively slow, the market remains difficult. But United has been able to stay profitable despite challenging market conditions,” said James P Mueller, vice president, Atlantic & Pacific sales, United Airlines.
He was speaking to TTN on the sidelines of the World Travel and Tourism Council (WTTC) Asia Summit which was held in Seoul on September 10 and 11.
“Our growth plans will remain very cautious given the environment, but we will continue to deploy our aircraft in the best way that matches the demand,” said Mueller. “Our plans are market driven.”
On the predicted huge growth in the travel and tourism sector in Asia, he said: “United is the number one airline on the US-Asia sector and it certainly watches very keenly the developments in this region. We expect to continue to grow along with markets. Our network in the US has been flat or declining slightly. The growth we are seeing as a company is all in the international markets and in that sphere Asia Pacific has been a big part of it.”
The airline already has a good head start in terms of building networks of flights in the region, he said. “We are also in a good position to take advantage of the future growth with a strong west coast hub in San Francisco and orders for new aircraft.”
In the Middle East, the airline flies to Bahrain, Dubai, Doha and Kuwait. “We are close observers of the tremendous growth in that part of the world. It is obviously an attractive destination for US companies and US tourists and in addition, the business ties create an improved mix of traffic in both directions and we will continue to look for opportunities in those markets,” Mueller said.
“The Middle East is a market that United is excited about, and having established a presence there, we continue to look for more opportunities,” he added.
On the fast paced growth of Middle East carriers, he said: “I think their growth has allowed us to highlight to the US government the benefits of a really strong and co-ordinated airline policy which is something that hasn’t existed in the past. We continue to be strong advocates of a policy that reflects the importance of aviation and its place in bringing economic benefits for countries around the world.”
 |
|
United … seeking new opportunities for growth |
Speaking on the sustainability efforts of the airline, he said the company won the Eco-Aviation “Airline of the Year” Gold award given by the Air Transport World (ATW) magazine this year.
United has more than 290 fuel-efficient aircraft on order and was the US launch customer for the Boeing 787 Dreamliner, which represents a significant advancement in aircraft innovation and achieves a 20 per cent improvement in fuel efficiency versus the aircraft it is replacing.
United has installed fuel-saving winglets on more than 330 mainline aircraft, and was also the launch partner for the new Split Scimitar Winglet, which will reduce CO2 emissions by 600 tons per aircraft per year and improve fuel efficiency by approximately two per cent.
United is on track to meet its 2013 goal to reduce fuel usage by 85 million gallons and associated carbon emissions by 828,750 metric tons, he added. “We are very proud of the achievements of our sustainability efforts,” he said.
Highlighting recent developments in the airline, Mueller said United reached a milestone of being the only US carrier offering 180-degree flat-bed seats and personal on-demand entertainment in premium cabins on all scheduled, long-haul international flights from the continental US (which comprises of the 48 states of the US, south Canada, north Mexico and Alaska).
The company continued outfitting aircraft with global satellite wi-fi, offering inflight connectivity on long-haul international flights. The airline now has about 70 aircraft complete and is installing satellite wi-fi at a rate of over 25 aircraft per month for the remainder of 2013, Mueller said.
The airline introduced its 200th aircraft with live television, offering customers more than 100 channels of live programming while in-flight.
United Airlines and United Express operate an average of 5,341 flights a day to more than 360 airports across six continents. In 2012, United and United Express carried more passenger traffic than any other airline in the world and operated nearly two million flights carrying 140 million customers.