Overview: According to Skift, United Airlines has eliminated approximately 4% of its management positions as part of an AI-driven restructuring. Its AI system has been integrated into various departments, including customer service, finance, network planning, and crew scheduling. CEO Scott Kirby's stance on AI is even more direct; in an interview published by CIO.com in September, he stated that the core principle is "the airline that makes decisions the fastest wins." As a result, United Airlines has become a case study for observing how airlines are restructuring their organizations in response to AI.
According to Skift, United Airlines stated that it has eliminated 4% of its management positions. During the third-quarter earnings call, Chief Financial Officer Mike Leskinen confirmed that AI has replaced approximately 8% of management functions, and an additional 4% are expected to be affected. He stated during the call, "We are adjusting processes and using AI to make the work of the headquarters management team more efficient." There is a discrepancy between the two sets of figures; refer to the original report for accurate details.
According to the same report, United Airlines' AI applications are no longer limited to a single department but have been integrated into almost all functions of its headquarters, including customer service, finance, network planning, and crew scheduling. In other words, this is not simply the launch of a single tool, but rather a comprehensive reorganization accompanied by process adjustments – which is also why the company officially links layoffs with "improving efficiency.
According to the San Francisco Business Times (bizjournals) on May 27, Kirby stated that United Airlines will use AI to automatically notify passengers when flights are changed, reducing the instances of passengers passively waiting for information. On September 2, CIO.com published an interview about United Airlines' AI strategy, with the headline highlighting its methodology: "The airline that makes decisions the fastest wins"—emphasizing organizational responsiveness, rather than model parameters, as the key to success in AI competition.
According to a report by Future Travel Experience earlier this year, United Airlines is piloting agentic AI in scenarios including mission-critical areas. From automated passenger notifications to agentic AI pilots, United Airlines' AI strategy clearly focuses on operations and decision-making, rather than just the passenger interface.
In its report, Skift compared United Airlines and Southwest Airlines as two airlines taking different approaches to applying AI. United Airlines is using AI to restructure its operations, leading to streamlining of its headquarters functions, with AI capabilities spanning multiple departments. The details regarding Southwest Airlines' approach were not elaborated on in the report's summary. This comparison illustrates that the industry does not yet have a unified answer to the question of "how AI changes organizations"—some airlines are choosing to start by adjusting their personnel structure, while others are starting by focusing on processes and systems.
It is worth noting that the causal link between the layoffs and AI is difficult for outsiders to fully verify. United Airlines' official explanation is that the restructuring is intended to "make the management team work more efficiently." While personnel adjustments and AI deployment are happening simultaneously, the report does not provide a clear basis for determining how much of the restructuring is due to AI and how much is due to regular cost-cutting measures.
“The airline that makes decisions the fastest wins” is a catchy strategic slogan, but its other side involves the redistribution of organizational power and job roles. United Airlines has openly stated its layoff figures, which makes it a more valuable case study than its less transparent competitors: Where is the limit of AI replacing management functions, and where will those who are replaced go? This information will influence the pace at which other airlines follow suit. At the same time, on October 6, United Airlines and Delta experienced global check-in and app issues due to technical malfunctions (according to CNN), reminding airlines that as they deepen their reliance on technology, they must also leave room for redundancy to mitigate systemic IT risks. Decision-making can be expedited, but the underlying foundation must remain stable.