By Rajesh Kumar Singh
CHICAGO (Reuters) -Newark Liberty International Airport is one of the largest hubs of United Airlines, and the congested airport is also the Chicago-based carrier’s biggest operational challenge.
The company told 1.5 million customers in a note on Thursday that congestion at Newark has eased since it reduced flights there. United also backed the U.S. Federal Aviation Administration’s decision to limit flights there, calling it “good news” for its customers.
But reduced flights are expected to hurt the company’s revenue and drive up operating costs.
United CEO Scott Kirby has acknowledged the disruptions at Newark will hurt, even though the carrier has been using bigger jets to minimize the revenue hit.
The airline has few viable alternative airports in the Northeastern U.S., according to analysts and company officials, so there is pressure to find a way to make Newark work, and United has some ideas.
It is also considering options such as increasing seats on flights at New York City’s LaGuardia Airport. But LaGuardia is slot-controlled, making it difficult to add flights there. Company executives say they plan to deploy Boeing 737-800s at LaGuardia in place of Airbus A320s to fly more passengers, but swapping aircraft will require changes to crew schedules which cannot happen until July.
Also, United has been seeking a way to return to New York’s JFK airport. Analysts say this can relieve some traffic in and out of Newark, particularly flights to Los Angeles and San Francisco.
But capacity at JFK is constrained, so United needs to acquire takeoff and landing slots at the airport, where the carrier stopped service in 2022 after failing to acquire sufficient slots to effectively compete.
Delta Air Lines, JetBlue and American Airlines are the top three U.S. carriers at JFK, according to aviation analytics company Cirium. To regain a foothold, United must negotiate with the FAA or acquire slots from one of those three.
United is negotiating a partnership with JetBlue, Reuters reported last month. This could ease United’s return to JFK.
Still, JFK would serve as a secondary airport for United, said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group.
“Newark would remain United’s primary New York metro market hub,” he said.
The New Jersey airport feeds traffic to United’s domestic and international flights. The company has an option to build its hub at Washington Dulles for domestic and international connections, easing its strain at Newark.
