United Cuts Distribution Costs by 22% with Direct Bookings

United Airlines reported a 22 percent year-over-year decline in distribution expenses, from $626 million to $487 million.

Executive VP and CFO at United, Mike Leskinen, explained: "Distribution expense does continue to come down as more customers are choosing to go through the direct channel. So I do expect that long-term trend."

United Airlines has leveraged its MileagePlus loyalty program to reduce distribution costs: Customers earn premier status points and award miles when booking directly.

United’s partnership with JPMorgan Chase Bank and its co-branded credit cards also helps avoid third-party platform fees, as card-linked bookings route through United’s direct channel.

Cover photo by Henry Siismets on Unsplash