UA to focus on premium expansion

United Airlines plans to further expand its premium offering following what executives described as the “exceptional performance” of its premium products. The strategy was outlined during the airline’s earnings call on January 21, which unpacked United Airlines’ 2025 full-year results.

For the year ended December 31, 2025, United reported a nett profit of $3,4 billion (R55 billion), up 6,5% year-on-year. Operating revenue increased by 3,5%, compared with 2024, to $59 billion (R956 billion). Revenue generated by passenger operations accounted for $53 billion (R859 billion) of this total.

Within this passenger revenue, premium cabins continued to outperform the main cabin, indicated by the airline’s fourth-quarter 2025 financial results, full-year results and results from the past four consecutive years, Andrew Nocella, United’s Executive VP and Chief Commercial Officer said during the earnings call.

“Premium cabin revenue was up 12% year-over-year on 7% more capacity. Passenger Revenue per Available Seat Mile for premium cabins also outperformed the main cabin by almost 10 percentage points in Q4. For the year 2025, premium revenues increased by approximately 11%, while standard and Basic Economy revenues were down by approximately 5%,” explained Nocella.

‘Premiumisation’

United continued to expand premium offerings throughout 2025, as it added 82 new aircraft and updated 119 aircraft to its Signature Interior, bringing the total equipment of its narrowbody fleet to 68%. As a result, premium seating accounted for a record 27,4 million seats across its fleet, representing 12% of all flown seats in 2025. 

“Premiumisation is one of our focuses in 2026. We've had this premium focus for almost eight years now and, while our lead is now being followed by a range of other US carriers, it's United's seven business-centric hubs that dictate this plan and why we expect to be more successful at it,” said Nocella.

The airline also announced United Elevated, its newest interior for its Boeing 787-9, featuring new United Polaris Studio suites that are 25% larger than United Polaris, with privacy doors, ottoman for companions, 69cm screens and exclusive food and beverage offerings to elevate premium air travel, expected to be available this year.

“Four of the Elevated 787s are now being prepared for delivery in the coming weeks, and we expect 16 more for the remainder of 2026. These aircraft, along with other new deliveries, will result in our premium capacity growth accounting for more than half our growth in 2026,” he said.