Executive VP & Chief Commercial Officer, United Airlines Holdings
Search every verified Andrew Nocella interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Andrew Nocella, Executive Vice President and Chief Commercial Officer of United Airlines, spoke at the Skift Aviation Forum 2023 about the airline's recent performance and strategy. He stated that he was "very happy" with the summer quarter and Q2 of 2023, describing the airline as "gaining momentum." Nocella noted that United's long-haul network is the "best of any US carrier" and that while international margins are better, domestic performance was also "very good." He emphasized that United's goal is not to maximize load factor, as lower load factors can help during irregular operations. Nocella discussed United's approach to growth, saying the US market is "more mature" and tied to GDP, while overseas offers more opportunity. He stated that United only flies routes that "produce a profit" and expects new routes to be "solidly profitable within year two." Nocella also highlighted the airline's use of continuous pricing technology, which he described as "really unique and really helpful." He addressed challenges including geopolitical issues, noting that Israel represents "almost 2% of United Airlines" and that the airline must be flexible with capacity. Additionally, Nocella mentioned that United spends "almost two billion a year on food" and that the food experience has "dramatically improved" over the past year.
“I was very happy with the summer quarter and Q2 as well. I think where we are, what we're doing, it's all coming together and we're gaining momentum.”
“Domestic doesn't make the same margins as International and we've said that many many times, but both were very good. International was better.”
“Our take on this is the market here in the United States is more mature. Growth in the United States is going to be very much tied to GDP and the growth rates of seven or eight or 9% for the industry are just not going to be possible, but growing overseas we think there's just a lot more opportunity.”
“You're only going to see United fly to places that produce a profit. We are a for-profit business and that's just fundamental.”
“The idea that you are investing in the future constantly, that you'll be profitable five or 10 years from now — I don't think we really buy into that. These routes need to get up and be solidly profitable within year two.”
“United is one of the only carriers doing real continuous pricing. Instead of discrete price buckets, we can put the right price point out there for every flight in a way we couldn't do before. This technology has been really unique and really helpful.”
“Our goal is not to maximize load factor. Having a few less seats or a few less people on the plane helps the operation during irregular operations. Lower load factors are okay for us.”
“We quickly staked out the fact that we needed to be uniquely United. We needed to find what our structural advantages were because I don't think we can copy other airlines and outdo them in any way.”
“We spend almost two billion a year on food. We didn't bounce back out of the pandemic the way we'd like on food service, so I got involved about a year ago. The food experience is dramatically better than where it was a year ago.”
“Geopolitical issues play a big role. For example, Israel is almost 2% of United Airlines and we're unable to fly there today. We need to be really flexible with capacity and move it around to deal with these geopolitical issues.”
Andrew Nocella, EVP, Chief Commercial Officer, United Airlines spoke with Brian Sumers, Founder and Editor of The Airline ...
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