United CFO warns weaker carriers may not survive fuel cost surge

United Airlines has removed what it considers unprofitable flying from its December schedule, according to chief financial officer Mike Leskinen, who spoke at a Morgan Stanley investment conference on 16 September.

Leskinen said the carrier expects to recover all of its fourth-quarter fuel costs. American Airlines has also trimmed December flights. United's approach centres on flying where it earns the most rather than chasing market share, he said, pointing to profitability and free cash generation as the goals.

The CFO also flagged the premium cabin and ancillary side of the business. Upgrades, lounge access and similar products are selling well, which executives attribute to investment in the onboard and ground product.

Leskinen said he does not expect every airline to make it through the current period, and predicted the situation will resolve itself. He said United stands to gain whichever way fuel prices move: if costs fall soon, the higher fares it has secured should hold and the market should stay healthy, while continued volatility could push the industry toward deeper capacity cuts, withdrawal from some routes, or carriers exiting the market entirely. American Airlines is among the carriers that have made similar schedule reductions.