Related: United alters boarding procedure<\/em><\/strong><\/li>\n<\/ul>\nWith larger aircraft, United has more merchandising flexibility. By 2027, United expects to average 145 seats per North American departure, up from 104 in 2019.\u00a0<\/p>\n
Opening up more seats for basic economy is also in keeping with carrier’s strategy to offer a wide slate of fares and products across its aircraft.\u00a0<\/p>\n
Last month, United pulled basic economy fares from legacy GDSs that use Edifact technology. Basic economy is bookable via United.com, the United app and NDC-enabled channels — including NDC offerings in the GDSs.\u00a0\u00a0<\/p>\n
Increasing competition with budget airlines<\/h2>\n
Delta was the first of the U.S. hub airlines to introduce basic economy in 2012. United and American followed in 2017. The bare-bones fare enables them to compete more effectively with budget carriers Spirit, Frontier and Allegiant.\u00a0<\/p>\n
United’s basic economy fares don’t allow flight changes or carry-ons larger than a personal item. Flyers can’t choose their seat.\u00a0<\/p>\n
Speaking on the call Wednesday, United CEO Scott Kirby said the discount carriers should be worried.\u00a0<\/p>\n
“What we tried to do is create a cost-competitive product that is better so that they will choose to fly United,” he said.<\/p>\n
He also took a dig at Frontier, which last year began cracking down on customers who attempt to board aircraft for free with carry-on bags that are too big to qualify as a personal item that fits under the seat in front of the passenger.<\/p>\n
“Charging a customer $99 at the gate and paying your employees a commission to take their purses away crossed the line,” Kirby said.\u00a0<\/p>\n
Frontier says that the $10 commission it pays to gate agents to flag rule-breakers is designed “to ensure all customers are treated fairly, including the majority who comply with the rules.”<\/p>\n
United’s Q3 profit was $1.14 billion<\/h2>\n
For the third quarter, United reported net income of $1.14 billion, up 20.7% year over year.<\/p>\n
The carrier reported record third-quarter revenue of $14.85 billion, a 12.5% increase that beat analyst estimates by $70 million, according to investment website Seeking Alpha. Capacity was up 15.7%.<\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"United Airlines is placing a new emphasis on basic economy fares.\u00a0 In the third quarter, United reported that revenue from basic economy sales rose 50%<\/p>\n","protected":false},"author":2,"featured_media":95669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"yoast_head":"\n
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