Internal documents leaked from United Airlines expose a calculated strategy to undermine American Airlines’ presence at Chicago O’Hare International Airport (ORD). The slides, shared with employees, openly mock American’s hub operations as unsustainable, highlighting years of strategic missteps that have cost the carrier hundreds of millions in losses. This isn’t just about market share; it’s a direct attack on a key competitor designed to force unfavorable business decisions.
The Battle for Chicago: A Competitive Landscape
United and American are locked in intense competition at O’Hare, both rapidly expanding capacity. American is rebuilding its schedule post-pandemic, while United leverages its existing dominance with a larger flight roster than ever before.
United’s core objective is clear: eliminate American as a major player at O’Hare, protect its hard-won gate access, and solidify its market position. While this competition temporarily benefits travelers with more options and potentially lower fares, the long-term goal is classic antitrust behavior – squeezing out rivals to inflate prices later.
United’s CFO Dismisses American’s Position
On Wednesday, United’s CFO bluntly dismissed American’s O’Hare hub as “temporary,” reinforcing the leaked slides that detail how United has steadily eroded American’s share of the Chicago market.
Ten years ago, American served more Chicago customers than United. Now, United leads significantly, claiming profitability at O’Hare while portraying American as operating at a loss. The leaked materials emphasize this disparity, using aggressive rhetoric reminiscent of a viral internet meme – “Stop, stop! He’s already dead!” – to illustrate the perceived futility of American’s efforts.
The Numbers Game: Cost Allocation and Credit Card Revenue
United claims American lost $511 million at O’Hare in 2025. However, this figure is heavily influenced by how costs and revenue are allocated. Specifically, United attributes Chicago-based co-brand credit card spending to Chicago flights rather than spreading it across the system, artificially inflating American’s losses. While Chicago still underperforms, the calculation method distorts the true picture.
American’s co-brand credit card revenue has declined from a leading position a decade ago to third place in charge volume, partially due to its diminished relevance in key markets like Chicago.
The Root Cause: American’s Fleet Decisions
American’s struggles stem from aggressive fleet cuts during the pandemic. The retirement of Boeing 757s, 767s, Airbus A330s, and Embraer E190s, combined with deferred Boeing 787-9 deliveries, hindered its ability to capitalize on the post-pandemic travel surge. This left American unable to rebuild its Chicago schedule effectively, forcing it to pull flights from other hubs.
United’s Strategy: Pressure and Profit
United is exploiting American’s weaknesses. Their higher profitability allows them to absorb losses in strategic areas like Chicago while simultaneously bleeding American’s market share. They are also actively undermining American’s financial credibility with analysts, creating pressure for the airline to scale back its operations.
United’s bet is that it can force American into a position where it cannot regain scale, even though doing so would unlock significant credit card revenue and miles sales.
The Stakes: Gate Value and Credit Card Deals
The battle for O’Hare isn’t just about flights; it’s about securing valuable assets. Recent gate sales by Spirit Airlines show that each gate at O’Hare could be worth $15 million. Chicago is also a critical market for credit card spending, making it essential for American to regain its presence.
American understands this and has already communicated the importance of Chicago to employees. The question remains whether United will succeed in pressuring American into abandoning its growth plans.
The outcome will hinge on whether United can convince Wall Street that American’s expansion is unsustainable, potentially forcing a strategic retreat. The entire situation is a direct consequence of American’s past missteps, and its ability to reverse those choices will determine its future at O’Hare.
