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One advantage of writing about airlines<\/a> and business for a long time is perspective. I\u2019ve been covering United Airlines<\/a> since before the pandemic, which means I\u2019ve been able to watch how CEO Scott Kirby<\/a> responds when things get difficult.<\/p>\n Back then, I was struck by how Kirby often sounded different from some of his competitors \u2014 most notably Delta Air Lines CEO Ed Bastian. I\u2019m not going to say one was wrong and one was right, but they were different:<\/p>\n Kirby\u2019s approach was straightforward: Describe the situation as it is, even if that meant sounding more cautious than others. Bastian, by contrast, more often emphasized recovery and optimism.<\/p>\n If you\u2019ve followed United for a while, this will sound familiar. A year later, he talked about demand returning, but only after laying out the reasons it might not<\/a>.<\/p>\n He has also been willing to move ahead of competitors, including on vaccines<\/a>.<\/p>\n Now there\u2019s another test: war in Iran, sharply higher fuel prices, and a real cost shock for the industry.<\/p>\n Kirby addressed it all in a message to employees<\/a> that was also released publicly. Here\u2019s part of what he told employees will and won\u2019t happen:<\/p>\n \u201cMany of you will remember in United\u2019s past that storm clouds like this caused United to furlough employees, defer aircraft orders, downgrade to regional jets, go through cost-cutting exercises, delay investments in the future, etc. We are not going to do that.\u201d<\/p>\n Those last seven words jumped out at me because he\u2019s addressing a specific fear.<\/p>\n Employees know the pattern. When costs spike and uncertainty rises, airlines cut.<\/p>\n Jobs, routes, plans \u2014 everything gets smaller. They\u2019ve seen it before. Kirby names that pattern directly, and then overrides it.<\/p>\n Now, that promise only works if it\u2019s credible.<\/p>\n So he backs it up. United has more cash than it did before Covid-19, stronger margins than most competitors, and a better credit rating than it has had in decades.<\/p>\n That gives it room to absorb higher fuel costs without changing direction.<\/p>\n He also puts numbers on the problem. Fuel prices have more than doubled in three weeks. If they stay there, the added cost would exceed what United has made in its best year.<\/p>\n This is a tough environment, and employees need reassurance \u2014 if they can believe it.<\/p>\n Look, you\u2019re probably not running an airline, but I\u2019ll bet you\u2019re running a business, or at least you aspire to.<\/p>\n That\u2019s why we study lessons like this.<\/p>\n In a crisis, leaders often focus on what actions they\u2019ll take. However, sometimes the more important move is to identify the outcome people are expecting \u2014 and state clearly that you are not going to allow it.<\/p>\n Do that. If your employees believe you and you follow through, you pass the test.<\/p>\n \u2014Bill Murphy Jr.<\/em><\/p>\n
During Covid-19, Kirby framed the situation in blunt terms, even reaching for a Churchill quote to describe the uncertainty<\/a>.<\/p>\n
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