CEO Scott Kirby Shares Probability of Lower Demand in 2025

United Airlines is set to retire 21 aircraft early in 2025 as it braces for potential market softness and short-term economic challenges. CEO Scott Kirby announced the decision at a Barclays industrial event, positioning the move as a cost-saving measure in response to weaker-than-expected profitability.

While United has not disclosed which aircraft will be phased out, Kirby emphasized that these are the “most expensive” in the fleet—an unsurprising claim given that older aircraft tend to be maintenance-heavy and fuel-thirsty. The carrier spent nearly $100 million on engine overhauls in 2024, suggesting that certain aging airframes are becoming more trouble than they’re worth.

United’s mainline fleet currently consists of 1,010 aircraft, with some clear contenders for early retirement being the Boeing 767-300ER, with an average age of 29.1 years, and the Boeing 757-200, at 28.2 years. Other aging models include the Boeing 777-200 and the Boeing 737-700, averaging 28.1 and 26 years.

Kirby pointed to a slowdown in government and lower-end consumer leisure travel as factors affecting demand. In response, United is leaning into what Kirby describes as “optionality and flexibility” by making these kinds of short-term adjustments.

Even with these retirements, United’s fleet will only grow in the coming year. The airline expects to take delivery of 73 new aircraft in 2025, including nine Boeing 787-9s, sixteen Boeing 737-8s, twenty-eight Boeing 737-9s, and twenty Airbus A321neos.

United isn’t alone in making cuts. Delta Air Lines recently adjusted its summer capacity projections, with Delta President Glen Hauenstein admitting the airline had initially planned to “fly whatever we could” but is now scaling back. United’s approach will also involve reductions in high-government traffic markets, Canadian routes, and redeye flights.

The stock market seemingly wasn’t thrilled with the news, with American Airlines down 8%, Delta down 7%, and United down 2%.

FMI: www.united.com