United Targets JFK Slots, Upgrades Premium Fleet Amid Boeing Max Delays

United Airlines is seeking to expand its operations at New York's John F. Kennedy International Airport (JFK) through potential deals with smaller carriers, as well as grow its international and premium offer. According to a CNBC interview with United CEO Scott Kirby, the airline faces cost challenges and barriers to growth, including limited airport slot capacity and manufacturing delays on new aircraft.

The Boeing 737 Max 10s, which were due to enter service six years ago, will not be ready until 2027. As a result, hundreds of seats made bespoke for the Max 10s are now sitting empty. 'We got a bunch of lie-flat seats that we don't know what to do with,' Kirby told CNBC. 'They don't fit on other airplanes.'

Despite these challenges, United is moving ahead with the so-called 'premiumization' of its fleet. The airline has kitted out some of its Airbus A321neos with 20 Polaris suites and premium economy seats to serve its 'Coastliner' transcontinental routes.

United's strategy is set to continue with Kirby talking up the carrier's South American and southeastern US networks, potentially turning Miami International into a new regional hub. The airline has already proposed an effective merger with Delta, but it was snubbed. Instead, United will partner with JetBlue in 2027.

Kirby also indicated that United could tackle the problem at JFK by acquiring slots from smaller carriers with low margins or unprofitable operations. Additionally, the airline is exploring the use of AI to minimize weather disruption, maximize efficiency, ease passengers' travel experience, and boost reliability.