Is United Continental's Management Becoming Overconfident?
United Continental (NYSE: UAL) has come a long way in terms of regaining investor support in the past few years. United Continental's board finally replaced longtime CEO Jeff Smisek two years ago, hiring railroad executive (and United board member) Oscar Munoz. In the past year, Munoz has hired several top deputies with lots of airline industry experience. This new team quickly created a plan to improve the company's operational and financial performance.
The new leadership team has announced some sensible strategy changes. Furthermore, United's operational performance has improved dramatically, driving better cost performance. However, during 2017, United's management has seemed to exaggerate how well the company is doing -- and that's troubling for investors.
During United's earnings call last week, CEO Oscar Munoz said that the company had a terrific quarter. President Scott Kirby followed by stating that the carrier had reduced its margin gap relative to Delta Air Lines (NYSE: DAL) for five straight quarters.
Source: Fool.com
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