Dive Brief:
- United Airlines is investing over $1 billion in customer product enhancements annually across all cabins and classes of service, CEO Scott Kirby said on a Q3 2025 earnings call Thursday.
- Customer-facing enhancements include providing power in every seat and feedback screens for basic economy flyers, expansive clubs, more premium seats and better food for premium flyers. United also expanded its loyalty program through a partnership with JetBlue this summer, offering more ways for customers to redeem miles.
- Such experience investments are “the foundation of keeping them brand loyal, from basic economy all the way to Polaris class,” Kirby said. “Every United customer simply gets more value at United than what our competitors offer.”
Dive Insight:
While many airlines are focusing specifically on premium customers, United is working to win customers across cabin and service levels for continued brand loyalty. That means heavily investing in customer experience.
“Every customer who flies United gets more value for basic economy customers,” Kirby said. “We don't just offer them a competitively priced ticket. We offer them the best app and on-time, flight, power in every seat, feedback screen, a great loyalty program, just to name a few.”
The strategy to encourage brand loyalty across service classes is also proving successful financially. This spring, as shifting trade policy and economic uncertainty led to a slow down in travel, United was able to maintain a steady performance, Kirby said.
“The first three quarters of the year were an economic downturn for airlines, at least, and our ability to grow earnings in the face of macro issues, is proof that the brand loyal, United Next strategy is resilient in tough times, and a clear proof point on our path to solid double digit margins,” Kirby said.
The airline reported total operating revenue of $15.2 billion, an increase of 2.6% year over year, according to an earnings release. In the third quarter, premium cabin revenue rose 6% year over year, while revenue from basic economy rose 4% year over year. Loyalty revenue rose 9% year over year.
“Historically, airlines looking to reduce costs have focused on testing, cutting customer friendly amenities like food,” Kirby said. “United is doing the exact opposite of that industry dogma, namely, investing more for the customer and focusing on flying at times that can be profitable, instead of just trying to maximize aircraft utilization.”
Such investments are also paying off in the form of rising net promoter scores. The airline’s NPS was up nearly 7% in the summer in comparison to the summer season last year.