United Airlines is improving its on-time rates after a rocky start to the year, rolling out new technology in airports and planes, and ridding itself of smaller 50-seat regional jets that aren’t economical for the airline anymore, Jim Compton, United’s chief revenue officer, said at a major aviation conference in Chicago on Sunday.
“It is no secret that we went through our share of challenges as we worked through our merger,” Compton told attendees of the annual World Route Development Forum at McCormick Place. The event is an expo and networking event at which officials talk about adding airline routes to different airports.
Chicago officials expect about 3,000 people in the airline, airport and tourism industries to attend the 20th event, being held this week in the United States for only the second time.
Chicago-based United Airlines has struggled with its operations since its merger with Continental Airlines in 2010, especially with being on time and with customer service — so much so that airline officials admitted that the carrier began to lose lucrative corporate customers.
After a dismal start to this year, posting a first-quarter loss of $609 million, United seemed to suddenly turn a corner, receiving accolades from Wall Street about its second-quarter profit of $919 million and its direction.
“Our second-quarter results were pleasing and an indication of what we plan to deliver more of in the future,” Compton said Sunday. “We’re not yet there, and we’re not where we want to be. But we’re headed in the right direction.”
United employs 14,000 in Chicago and flies 570 flights per day from O’Hare International Airport, where it is Chicago’s largest airline.
Technology is playing a larger role for the airline, which plans to phase in a new United.com website this year, Compton said. And it is adding charging stations to its gate areas, including more than 100 at O’Hare, he said.
It’s also adding Wi-Fi — it has been slow to do that relative to its peers — to its aircraft and will be done outfitting its mainline fleet by the end of next year. It is also adding self-tagging at check-in kiosks, installed recently at O’Hare, and the ability, on some aircraft, to stream onboard video entertainment to passengers’ personal devices, such as laptops and iPads.
“Now, more than ever, technology plays an integral role in how we do and think about our business,” Compton said. “Our customers are demanding it … they want so much to be in control. For that to happen, you have to have the right technology in the right places.”
United, following an industry trend, is replacing its 50-seat regional jets, operated by third-party carriers as United Express, with 76-seaters that are more economical for the airline and important for customers because they can accommodate standard-size carry-on bags in the overhead bins, Compton said.
United will remove the equivalent of 130 50-seat jets from its system this year and next, Compton said.
Economic development officials said the Routes conference supports Mayor Rahm Emanuel’s often-stated goal of attracting 55 million visitors per year to Chicago by 2020 and being among the top five U.S. cities in international tourism.
The direct economic effect of the Routes conference, including hotels, restaurants, transportation companies and more, is expected to be $5.2 million, according to Choose Chicago, the city’s tourism agency. But drawing new airline service can be far greater. Wide-body aircraft routes equate to about $200 million per year in economic effect, according to the Chicago Department of Aviation.
While the Routes conference is not open to the public, its goings-on can benefit Chicagoans by opening new air travel routes from Chicago’s airports, especially direct flights to international destinations, city officials said.
It also could bring more competition, which often forces fares lower. For business travelers, more routes often allow more nonstop flights, said Rosemarie Andolino, commissioner of the city’s aviation department.
