United Airlines has reported a 1st quarter loss of $417 million which is almost 60% of United Airlines’ 2012 total year loss of $723 million.

Yes, in the first quarter of 2013, United Airlines has lost 57% of the total losses for 2012.  For those keeping score, we have still got 3 more quarters to go.

There is runway for United Airlines to make this up.  I don’t think they will.  Not this year.  United isn’t running on all cylinders, not yet anyway and I see nothing to signal a dramatic change in their approach to earning money.  CEO Jeff Smisek points to a slightly improved operational record and while it is true, it isn’t the answer.

United has lost a lot of high paying customers and it isn’t earning enough revenue and it needs a strategy that reverses that course.

I’m now in the position of wondering if Jeff Smisek was the right CEO for this integration.  One thing that stands out:  Smisek isn’t very prominent in leading this airline.  Other Continental leaders were far more prominent and stood out in front with their employees.  I get the sense that Smisek is more like United leaders who hide in a tall building hoping problems might go away.  It’s his perception to change.

Maybe they should interview Tom Horton.

Filed under: Airline News by ajax