廣告
香港股市 已收市
  • 恒指

    18,028.52
    -306.80 (-1.67%)
     
  • 國指

    6,439.82
    -116.28 (-1.77%)
     
  • 上證綜指

    2,998.14
    -7.30 (-0.24%)
     
  • 滬深300

    3,495.62
    -7.66 (-0.22%)
     
  • 美元

    7.8057
    +0.0009 (+0.01%)
     
  • 人民幣

    0.9297
    -0.0001 (-0.01%)
     
  • 道指

    39,150.33
    +15.57 (+0.04%)
     
  • 標普 500

    5,464.62
    -8.55 (-0.16%)
     
  • 納指

    17,689.36
    -32.23 (-0.18%)
     
  • 日圓

    0.0486
    -0.0003 (-0.55%)
     
  • 歐元

    8.3463
    -0.0082 (-0.10%)
     
  • 英鎊

    9.8690
    -0.0090 (-0.09%)
     
  • 紐約期油

    80.59
    -0.70 (-0.86%)
     
  • 金價

    2,334.70
    -34.30 (-1.45%)
     
  • Bitcoin

    64,385.06
    +147.22 (+0.23%)
     
  • CMC Crypto 200

    1,351.33
    -9.00 (-0.66%)
     

United CEO on debt ceiling, new $1 billion Denver investment

United Airlines (UAL) CEO Scott Kirby is putting a lot of capital to work for shareholders in new Boeing 737 Max airplanes, upgraded airport experiences, and added first-class seating.

The last thing Kirby wants to see is America default on its debt in June after another contentious debt ceiling debate. That dire outcome would potentially lead to a US recession that harms returns on these key investments by United Airlines.

"The economy is balanced on a knife's edge," Kirby said on Yahoo Finance Live (video above). "When the Silicon Valley banking scare started, we saw a 15% overnight drop in business bookings, and that tells you the economy is very fragile."

"That's what I am worried about with the debt ceiling," he added. "We don't need an unforced error in the economy — and this would just be an unforced error."

FILE - A United Airlines jetliner taxis to a runway for take off from Denver International Airport, Dec. 27, 2022. United Airlines reports earnings on Tuesday, April 18, 2023. (AP Photo/David Zalubowski, File)
A United Airlines jetliner taxis to a runway for take-off from Denver International Airport, Dec. 27, 2022. (AP Photo/David Zalubowski, File) (ASSOCIATED PRESS)

Kirby says demand continues to be strong ahead of the busy Memorial Day travel weekend. But maintaining that momentum will be tough if the US is thrust into a self-created debt ceiling recession.

廣告

"If the debt ceiling crisis turns into a bigger crisis is where we are really impacted," Kirby added. "We just shouldn't take the risk — it's a silly, silly risk to think about letting that first domino fall."

Kirby is hopeful politicians will come to a resolution in a timely manner.

However, the contentious situation in D.C. isn't stopping United Airlines from making the major investments it views as necessary to beat the competition such as Jetblue (JBLU), Delta (DAL), and American Airlines (AAL).

DENVER, CO - APRIL 22: A woman walks to her car at an empty passenger drop off area at Denver International Airport as the coronavirus pandemic slows air travel on April 22, 2020 in Denver, Colorado. Compared to the same time last year, Denver International Airport is operating 1,000 fewer flights daily. (Photo by Michael Ciaglo/Getty Images)
A woman walks to her car at an empty passenger drop off area at Denver International Airport as the coronavirus pandemic slows air travel on April 22, 2020 in Denver, Colorado. (Photo by Michael Ciaglo/Getty Images) (Michael Ciaglo via Getty Images)

United said Tuesday it will add 35 flights, six new routes, a dozen gates, and three clubs to Denver International Airport as part of a $1 billion investment plan. This summer, United will also double the total number of early morning departures and late evening arrivals in and out of Denver.

The airline said it will offer more capacity from Denver than ever before, with over 60,000 departing seats per day.

"It's just a great, growing city," Kirby said on the thinking behind the Denver investment.

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on the banking crisis? Email brian.sozzi@yahoofinance.com

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance