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Fortune
Fortune
Phil Wahba

How United’s ‘premiumization’ strategy got passengers to swallow higher airfares without a fight

United Airlines has spent years training passengers to pay more for better seats and amenities, and the strategy is paying off. As fuel costs climbed amid the U.S.-Iran conflict, the airline raised fares and leaned harder into “premiumization,” driving second-quarter operating revenue up 16% to $17.7 billion.

“Demand is strong,” United CEO Scott Kirby told Wall Street analysts on a conference call Thursday. “United has proven that our brand loyal strategy is working, and we’re using today’s environment to accelerate our investments in all aspects of the customer experience from nose to tail.”

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