Leadership in Turbulent Times

When Michael Leskinen WG07 stepped into the role of CFO at United Airlines a year ago, the airline industry was navigating through stormy weather. Since then, there’s been a downpour of headlines on safety concerns, IT meltdowns, employee strikes, and fuel efficiency. As Leskinen puts it, “It’s been a bumpy ride.”

Leskinen’s road to CFO was also unpredictable. Fascinated with stocks, he started out as a portfolio manager at Voya Investment Management, then moved to OppenheimerFunds to gain experience in the industrial sector. But it was at J.P. Morgan that Leskinen carved out his niche with aerospace investing — knowledge he leveraged when he joined United in 2018 and launched the airline’s $200 million sustainable flight fund.

In an interview with Wharton Magazine, Leskinen spoke on how to build a career you love and how a disciplined financial approach can impact the future of flying.

Wharton Magazine: You’ve been in aerospace finance for more than 20 years. What initially attracted you to this industry?

Michael Leskinen: Very early in college, I stumbled upon the stock market and got very interested in managing a portfolio. The way to get an edge is, you have to specialize. The best managers out there specialized. And I saw that in the aerospace sector.

I loved the access I got to senior leaders within the defense industry. I spent a lot of time at the Pentagon; lots of trips on the commercial aerospace side, given our suppliers in Japan. I probably could have continued that career until retirement, but I had a midlife crisis. The idea was to do something even more specialized. I was pitching an accelerated share repurchase to the CFO of Northrop Grumman and explained how they maybe should look at this merger. And he says, “Mike, listen. You’re in the cheap seats, throwing popcorn at us. If you want to do things like this, you need to get on the field.”

I got very excited about it. And I saw United Airlines, a company that had the bones of a leader. The idea was, what can I help accelerate with some disciplined financial management? And what company has the most opportunity to improve?

WM: What inspired the United Airlines Ventures fund?

ML: It was a twinkle in my eye when I started at United. Because the airline industry has been boom-to-bust, we’re always just fighting off the alligator closest to the boat — crisis to crisis. We had not been planning long-term.

The industry has been so cyclical because we have a commodity product. There’s been a race to provide the cheapest seat, and then everybody gets upset that the seats aren’t comfortable. The fund was about getting us out of that cycle. Let’s start thinking about what could change commercial aviation for the better. Can we accelerate the certification of electric vertical takeoff and landing? What can we do to truly change the carbon footprint through technology, not through collecting fats, oils, and greases around the world, where there’s a limited quantity? It gets some nice benefit in the press about burning that fuel, but it’s not going to change the carbon footprint in the entire industry.

It’s been really exciting. And what made it so special is that no other airline had been doing it. Other airlines had venture funds, but they’ve been run by pilots. And that’s great knowledge. But running a venture, you have to understand the financials. Is this entrepreneur going to be able to raise money in successive rounds? We ended up structuring some investments to provide some balanced risk, but it was a financially disciplined approach that I think made us so successful.

WM: Airlines are facing challenges on many fronts, but United CEO Scott Kirby has been outspoken about his confidence in Boeing’s new leadership. What is it like being in a high-profile role at an airline right now?

ML: It’s been a bumpy ride. But customers are choosing to fly United because we can accommodate passengers better than any other airline in the world.

When I think about what’s happening with labor, with Boeing and Airbus, with air traffic control — there are a lot of constraints. This is a tough operating environment. But that’s an environment where you can really differentiate yourself. And under Scott’s leadership, we prepared for an imperfect world, and because of that, we’ll manage through these different crises much more effectively.

WM: Speaking of the labor shortage, it looks like you’re trying to tackle that problem with the United Aviate Academy.

ML: The pilot academy was something I was very deeply involved with. We scoured the nation for some of the best aviation schools out there, and we did two small acquisitions in Arizona. The bonus of that is, we’re getting the best and the brightest. We’ll also have more diversity in our pilot workforce.

WM: Going back to your time in Wharton’s Executive MBA program, was there a class that stood out?

ML: I had a blast. I miss those days. I commuted back and forth from New York with a crew of people that have become lifelong friends. The class I can go back to and specifically reference things I learned was Stuart Diamond’s negotiation class: How do we think about the interests of the other side?

WM: What makes you most excited about United’s future? 

ML: We’re going to be the largest, most profitable, most customer-friendly airline this industry has ever seen. And we’re well on our path.

WM: Is there anything else you’d like to add?

ML: I had a general direction I wanted to take my career. You have to have some focus, but be open-minded to opportunities, because if you find something you love, you’re going to be great at it. I feel like I’ve been training for this job for 30 years. I’ve got the keys to the kingdom to make a real difference in the industry.

WM: That’s great to hear. And I have to ask: Have you ever flown a plane? 

ML: I have. I did not pursue my pilot’s license. I have six children and a busy work life, so maybe someday.