United's Cleveland Hub Closure Is an Added Plus for Airlines as Industry Consolidates
The Street - about 4 years
CLEVELAND (TheStreet) -- Cleveland may not be happy with the loss of its United hub, but airline analysts applauded the move, widely seen as both inevitable and beneficial not just for United but for other carriers as well.
"We've been waiting for this," wrote Wolfe Trahan analyst Hunter Keay, in a report issued Wednesday. "We thought an announcement of a hub closure could come at [United's] November analyst day."
Imperial Capital analyst Bob McAdoo said the Cleveland hub closure means that "Cleveland will no longer compete for traffic with United's other hubs" or with flights operated by other carriers.
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"Benefits associated with the reduction in Cleveland service will be shared across the industry," McAdoo wrote in a report issued Tuesday, noting that passengers who had connected through Cleveland are now likely to connect through Philadelphia to the east, Atlanta and Charlotte to the south and Chicago or Min...
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