United Airlines (NASDAQ:UAL) announced Thursday that CEO Oscar Munoz will turn over day-to-day management of the airline next spring to President Scott Kirby, who will become company’s chief executive officer.
The change happens in May, when Munoz becomes executive chairman, succeeding 75-year-old Jane Garvey, who is retiring from the board.
The move ends speculation Kirby could be hired to replace Doug Parker as CEO of American Airlines, where shares are down 26% in the last year.
Kirby was Parker’s top lieutenant for a decade as Parker merged America West with U.S. Air and later merged U.S. Air with American, creating the nation’s largest airline. Kirby said in October he would not be leaving United.
Kirby, who was hired by Munoz in 2016 with a mandate to improve the airline’s execution, has been a driving force in improving United’s performance and profit growth during the last two years.
Munoz assumed the helm of the airline four years ago, but within a month, suffered a heart attack that forced him to take a medical leave.
In early 2016 Munoz received a heart transplant, keeping him out of work for weeks.
When he returned, Munoz found an airline trailing its competitors in almost every important metric, including earnings growth, profit margin and customer service. Things got worse in April 2017, when a major scandal erupted after security officers dragged a passenger off a United flight that was oversold.
UAL shares soared 38 cents to $88.55
