United Airlines’ growth strategy is all about selling customers a better version of what they already buy

Good morning. Phil Wahba writing from New York this morning. If it seems like airfares keep climbing—but you keep paying anyway—that’s all part of the plan, at least at United Airlines. There, CEO Scott Kirby has been working on a long-term “premiumization” of the airline’s offerings, and his playbook is relevant to any CEO looking to squeeze more margin out of the same customer base by selling them a better version of what they already buy. “Demand is strong,” Kirby told Wall Street analysts on a conference call last Thursday. “United has proven that our brand loyalty 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.” Industry-wide, prices for domestic routes are up 35% this year, and interna