United Airlines CEO to exit job in May

United Airlines CEO Oscar Munoz will hand the reins to President Scott Kirby next year, capping a turnaround effort at a carrier that had become an industry laggard after a rocky merger and a pair of embarrassing scandals.

Kirby, 52, will take over as CEO at United Airlines Holdings Inc. in May, less than four years after joining the company following a long tenure as the No. 2 executive at American Airlines and US Airways. Munoz, 60, who overcame a severe heart attack shortly after becoming CEO in 2015 and went on to have a heart transplant, will become executive chairman.

Current Chairman Jane Garvey will retire in May.

Kirby and Munoz worked to fix an airline that flailed for years after its 2010 merger with Continental Airlines. The two executives unveiled an ambitious expansion plan last year that initially spooked investors, but results improved, and the carrier boosted its profit forecast.

Munoz’s predecessor had just been ousted amid an internal probe of how the airline handled a case involving ties to the former chairman of the Port Authority of New York and New Jersey.

The Chicago-based carrier came under scrutiny again in April 2017 when a Kentucky doctor was dragged from a regional jet — an episode that seemed to illustrate United’s approach to customer relations for many travelers. But employees had warmed to Munoz’s changes, which included new contracts with most major work groups and robust investment on upgrades for airport facilities, employees’ smartphones and other technology.

Kirby has sought to overhaul the carrier’s network, operations and revenue management. He has emphasized the need to reclaim what he calls “natural share” at United’s three midcontinent hubs in Chicago, Denver and Houston.