Originally Posted by
N1234
who says they are fleeing IAH? All they do is transition their fleet to 175 and concentrate on one operator. May not be efficient in the long run but I don't think this signals any major UA service for IAH. It will just be provided by someone else - unfortunately.
Perhaps "fleeing" is a strong word. For your reading pleasure:
United Airlines to pull resources from Houston hub - Houston Business Journal
Low oil prices are helping
United Airlines boost its earnings but are pulling it away from Houston, where it has one of its largest hubs.
Chicago-based
United Continental Holdings Inc. (NYSE: UAL) said on an earnings call Jan. 21 that it would be reducing its resources at George Bush Intercontinental Airport,
according to a transcription from Seeking Alpa.
The airline plans to shift Houston's resources to better-performing markets like San Francisco and Denver, though it did not provide further details. The Houston Chronicle reports that the changes could result in relocating and downsizing planes, as well as changing routes.
United said that low oil prices have reduced demand not only from corporate energy partners, but also have now begun to impact revenue from broader markets. The company said it had previously expected to grow in Houston by 2 percent this year, but now growth is expected to be flat.
Overall, though, United saw
increased earnings both in its fourth quarter and full year numbers.
Its net income for 2015 was $7.3 billion, including special items, up from $1.1 billion the previous year. However, total revenue for the year was $37.9 billion, down from $38.9 billion.
United is
currently underway on a $244 million concourse at IAH. The project broke ground in May and is slated to open next year. United said it will maintain a strong commitment to Houston, but it will make slight adjustments.
The company's newly appointed CEO
Oscar Munoz was present on the conference call. He
suffered a heart attack last year but has been on the mend.
I don't think IAH is done for, even for SkyWest. BUT, UAL plans to only have 100 50 seaters in the express portfolio in three years, and they're letting 700's go (to other carriers, natch). Things could look very different in the near future. Lots more E175's coming, too, just a question of who, when & where. It's dangerous to choose an airline, ANY airline, based on domicile. Just ask the guys who came to SkyWest for San Diego