Prudent Capacity Bets and Strong International Network Are Paying Off for United Airlines

Before the pandemic, much of United's strategy focused on cutting costs to expand margins, which declined slightly between between 2015 and 2019, averaging 10.6%. In December 2022, United announced a giant order for 100 Boeing 787 Dreamliners with options to add 100 more. The airline now plans to add 700 narrow- and wide-body aircraft to its fleet by 2032. We expect these more efficient aircraft to boost United's capacity (available seat miles) and support margin expansion, which we forecast will reach 11.5% later this decade.