Originally Posted by
MasterOfPuppets
there is zero chance that a FA contract will add a billion a year to United. The pilots didn’t even add that.
and if you are thinking about a signing bonus United took that 1 time charge at the end of 2024.
It’s extremely plausible that it will add $1B a year in costs for FA alone. That doesn’t include technicians and whatever contract they ultimately secure.
UA Q2 25’ earnings call: “We do have to pay a bill on the labor front. I’ve been saying for some time the bill will be 2-3 points when all those labor agreements ratify. We will have some added expanse relative to that in 2026”. The same CFO clarified that “labor front” is FA’s.
2-3 points mean 2-3 points higher CASM. Cost/ASMx1000.
The math: 340B ASM a year equates to about $700M-$1B a year if the value of the contract is valued at $25,000-$30,000 per person. UA has been getting away with this labor advantage for 5 years. The pilot contracts added much more than that.