UA CEO Kirby has it right IMHO. Now if only he would improve the onboard food….
So in a place like Denver, United had change fees in place, there were a segment of customers that United was the brand loyal airline, the segment of customers. I’m not trying to knock on Southwest. Southwest had those customers, those domestic road warriors, the biggest advantage that Southwest had over United was no change fees.
For customers that mattered, that was enough to overwhelm our frequent flyer program and first class and clubs and food and all the other stuff. But now that’s a tie. We’re not better, but that’s a tie. And all the other stuff that United wins. And so the brand loyal customers moved, not because Southwest did anything wrong, they didn’t.
But we just matched their one competitive advantage, and those brand loyal customers have switched. And so it’s just that’s the point about it, it’s sticky. Those customers are sticky. And as other airlines incrementally move closer to us, it’s not going to be enough that they pass us and an airline and a customer decides to switch. They’re just they’re sticky at United.