This article summarizes reporting by Reuters and Rajesh Singh.

United Airlines CEO Draws “Line in the Sand” in Battle for O’Hare Dominance

The ongoing struggle for control over Chicago O’Hare International Airport (ORD) intensified sharply on Wednesday, January 21, 2026. During United Airlines’ fourth-quarter earnings call, CEO Scott Kirby issued a stark warning to rival American Airlines, signaling that United is prepared to aggressively defend its market share and gate allocation at one of the world’s busiest aviation hubs.

According to reporting by Reuters, Kirby explicitly stated that United is “drawing a line in the sand” regarding gate competition in 2026. The conflict centers on the airport’s “use-it-or-lose-it” leasing agreement, which reallocates gates based on flight departure volumes. With American Airlines attempting to regain ground lost in 2025, United has pledged to match any capacity increases necessary to prevent its rival from acquiring additional infrastructure.

The “Line in the Sand”: Financials and Gate Control

The core of this dispute is not just about rhetoric; it is a structural battle over real estate governed by the 2018 Airline Use and Lease Agreement (AULA). As reported by Reuters, Kirby emphasized that United would add “as many flights as are required” to maintain its current gate count.

During the earnings call, United leadership highlighted a significant financial divergence between the two carriers at their shared hub. Kirby claimed that while United’s O’Hare operations generated approximately $500 million in profit in 2025, American Airlines suffered a loss of roughly the same amount at the hub. United argues that this disparity makes American’s aggressive expansion unsustainable.

The 2025 Reallocation

The tension follows a decisive shift in airport real estate that occurred in late 2025. Due to United’s faster post-pandemic recovery and higher schedule density, the carrier triggered a lease clause allowing it to acquire five additional gates in October 2025. Conversely, American Airlines was forced to surrender four gates due to lower utilization metrics.

Current airport data indicates the following gate distribution:

• United Airlines: Approximately 97 gates
• American Airlines: Approximately 65 gates

“We’re not going to allow them to win a single gate at our expense.”

, Scott Kirby, United Airlines CEO (via Reuters)

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American Airlines’ Counter-Offensive

Despite the financial figures presented by United, American Airlines has launched a “scorched earth” scheduling strategy to reclaim its footing. Industry reports indicate that American has added approximately 100 daily departures to its Spring 2026 schedule. The goal of this volume increase is to improve utilization metrics enough to trigger a “claw back” of gates in the next annual allocation cycle.

In addition to schedule padding, American Airlines executed a strategic real estate acquisition in late 2025. Following Spirit Airlines’ bankruptcy proceedings, American purchased two gates for $30 million, securing access outside of the city’s standard allocation formula.

The Route War

The competition has spilled over into regional route networks, creating a “tit-for-tat” scenario. When American announced new service to regional markets such as Erie, Pennsylvania, and the Tri-Cities in Tennessee in early January, United responded within 24 hours by announcing identical routes. This strategy effectively floods smaller markets with capacity, preventing either carrier from establishing a monopoly.

AirPro News Analysis

While passengers may benefit temporarily from the lower fares resulting from this capacity dumping, the long-term implications for O’Hare are complex. The aggressive “use-it-or-lose-it” rules were designed to ensure efficient use of public infrastructure, but they currently appear to be incentivizing airlines to fly potentially unprofitable schedules solely to hoard real estate.

Furthermore, this squabble is the prelude to the massive “O’Hare 21” expansion. The carrier that commands the most market share today will likely wield the most influence over the design and allocation of the upcoming Satellite 1 and Global Terminal projects. United’s “line in the sand” suggests they view 2026 not just as a battle for current gates, but as the deciding year for the airport’s future configuration.

Frequently Asked Questions

Why are United and American fighting over gates?

O’Hare allocates gates based on a “use-it-or-lose-it” formula. Airlines must maintain high flight volumes to keep their gates. United recently won more gates from American, and American is now adding flights to try to win them back.

How does this affect passengers?

In the short term, passengers can expect more flight options and lower fares as both airlines add capacity to win market share. However, if one airline retreats, prices could rise.

What is the financial status of the hubs?

According to United CEO Scott Kirby, United’s O’Hare hub profited ~$500 million in 2025, while American’s hub lost ~$500 million.

Sources: Reuters