Why United Airlines has had such a stellar year despite being Boeing's biggest customer

United Airlines' Performance and Strategy - United Airlines' stock price has increased by 148% in 2024, significantly outperforming its peers [2][4] - The airline has managed to thrive despite Boeing delivery delays by leasing planes and reducing domestic supply [3] - United's strong financial position, share buybacks, and broad network have contributed to its success [3][4] Fleet and Network Expansion - United is undergoing a fleet renewal with 270 new narrow-body planes and 150 Boeing 787 Dreamliners, enhancing its competitive edge [14] - The airline has received 21 Airbus A321neos, 31 Boeing 737 Maxs, and one Dreamliner as of November 30, 2024 [15] - United plans to replace aging Boeing 757s with Airbus A321XLRs, targeting new destinations like northern Italy and West Africa [17] International Operations and Revenue Growth - United's international exposure is significantly higher than its peers, with 2024 transatlantic winter bookings up 30% compared to pre-Covid levels [7] - The airline has focused on long-haul flights, particularly in Europe and Asia, to boost revenue [6][10] - Premium revenues, including Polaris business class and premium economy, increased by 5% year-over-year in the third quarter [24] Hub Structure and Market Positioning - United benefits from a strategic hub structure, with key airports in Los Angeles, San Francisco, Washington, DC, and Newark acting as international gateways [11][12] - The airline's hub network provides strong connectivity across the US and supports high-yielding premium and business traffic [12][23] - United's hub advantage is seen as a key differentiator compared to competitors like Delta and American [13] Financial Performance and Share Buybacks - United's adjusted pretax margin of 9.7% reflects its revenue diversification, including premium and basic economy customers [19] - The airline announced a $1.5 billion share buyback, signaling strong financial health and confidence in future cash flow generation [20][27] - Analysts at HSBC raised United's price target to$116, citing its international network as a key driver [21] Operational Efficiency and Customer Experience - United has strategically deployed capacity amid Boeing delivery delays, optimizing its operations [9] - The airline has enhanced customer experience by installing features like Bluetooth in new Boeing 737 Max cabins [18] - Basic economy revenue increased by 20%, indicating success in attracting budget-conscious travelers [26]