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United Airlines suffered bookings drop due to Newark chaos โ and it'll hurt profits, says CEO
New York Postยท 2025-05-29 20:05
Core Insights - United Airlines experienced a significant drop in bookings due to outages and staffing shortages at Newark Liberty International Airport, impacting the airline's financial performance [1][2] - The airline's quarterly earnings are projected to be between $3.25 and $4.25 per share, with the Newark situation likely causing earnings to fall short of the upper end of this forecast [2] - CEO Scott Kirby emphasized that despite safety concerns, it is safe to fly through Newark, and he encouraged customers to book flights confidently, noting that ticket prices are currently lower than usual [3][4] Operational Challenges - Newark Liberty International Airport faced multiple communication technology failures, leading to air traffic control issues and a negative perception among customers [1][3] - The Federal Aviation Administration (FAA) has implemented new regulations to cap daily arrivals and departures at Newark to alleviate congestion and reduce delays [4][7] - Kirby has called for further government action to modernize air traffic control systems and address staffing shortages nationwide [7] Market Dynamics - Despite external pressures, consumer spending in the airline sector appears to be stable, even amidst tariffs imposed by the previous administration [8] - United Airlines announced a partnership with JetBlue Airways to integrate their loyalty programs, allowing customers to redeem points across both airlines [9] - This partnership also marks the return of United flights to New York's John F. Kennedy International Airport after a hiatus since 2022 [10]