CEO of Major Airline Warns of More Travel Disruptions as Carriers Struggle With Pilot Shortages, Outdated Tech
The CEO of United Airlines warned on Jan. 18 that outdated technology and a shortage of pilots and workers could see other airlines canceling and delaying flights for passengers this year.
CEO Scott Kirby made the comments during a call with analysts and reporters to discuss the company’s fourth-quarter financial results.
The CEO said that airlines that are still operating as if it is pre-COVID and that have not invested in new technology do not have the capacity to operate all the flights they are planning to run and are therefore likely to struggle, which could lead to yet more travel chaos in 2023.
“Most (airlines) didn’t invest in the future. That means the system simply can’t handle the volume today, much less the anticipated growth, “Kirby said. “There are a number of airlines that cannot fly their schedules. The customers are paying the price. They’re canceling a lot of flights. But they simply can’t fly the schedules today.”
In a December analysis, the International Air Transport Association said it anticipates that pent-up demand for air travel will continue into 2023, with the total global Revenue Passenger Kilometers (RPKs)—which indicates the number of kilometers traveled by paying passengers—to rise 20 percent this year.
Southwest Cancels Thousands of Flights
However, it noted that there are “key uncertainties” regarding that outlook relating to how fast China can recover from the latest outbreak of COVID-19.
“Although the timing—particularly in the case of China—remains highly uncertain, we expect to see the resumption of travel, at least in part, take place from around the middle of 2023,” the association said.
Kirby on Wednesday cited the travel chaos during the peak holiday travel season in which Southwest Airlines canceled more than 16,000 flights when a powerful storm hit much of the United States.
At times, the cancellations totaled 60 percent of the airline’s daily schedule and many passengers were left waiting for their misplaced luggage returned to them for days after flights returned to normal.
A string of other airlines—including United—also canceled flights during the busy holiday period. Overall, Dallas-based Southwest estimates it lost around $825 million during the Christmas holiday meltdown, the majority of which stems from lost revenue and reimbursements to passengers.
Shareholders of Southwest Airlines have since filed a lawsuit against the carrier accusing it of failing to publicly disclose serious shortcomings in its outdated flight scheduling software technology.
The lawsuit lists defendants as former Chief Executive Gary Kelly, his successor Bob Jordan, and Chief Financial Officer Tammy Romo as defendants, as well as the airline itself.
Holiday Travel Chaos Wasn’t a ‘One-Time Event’
Southwest airlines declined to comment on the litigation when contacted by The Epoch Times.
While he did not cite Southwest Airlines by name, Kirby said on Wednesday’s call: “What happened over the holidays wasn’t a one-time event caused by the weather, and it wasn’t just at one airline.”
“One airline got the bulk of the media coverage, but the weather was the straw that broke the camel’s back for several. This keeps happening over and over again, and you can see that despite good weather, ULCC (ultra-low-cost carriers) still hadn’t recovered even as we entered the New Year,” he said.
“The operational difficulties are just the latest among numerous data points, proving the systemic challenges that are going to limit the growth in flights,” Kirby added.
United Airlines reported a profit of $843 million in the fourth quarter of 2022 and also noted that it was able to recover quickly from significant irregular operations in December owing to winter storm Elliott.
“During the key holiday travel days between December 21 and 26, nearly 36 percent of all United flights were exposed to severe weather. Despite that impact, 90 percent of United customers made it to their destination within 4 hours of their scheduled arrival time,” the company said.
It added that it was able to do this in part thanks to “significant investment” in employees, resources, and technology over recent years.
Katabella Roberts is a news writer for The Epoch Times, focusing primarily on the United States, world, and business news.
