United keeping `painful' discounts to fend off low-fare airlines

United Continental vowed to keep discounting fares amid an expanding price war that contributed to a projected US$400m blow to Q3 sales. The carrier will continue fighting LCCs with cheap tickets at major hubs despite the short-term pain, CFO Andrew Levy said Wednesday. The clash is adding to pressure from the impact of Hurricane Harvey, weak pricing on trans-Pacific flights and a rocky start for new no-frills fares, which are all weighing on revenue. “We don’t like where the fare structures are right now. And we don’t like the effect it has on short-term earnings,” Levy said. “It is painful, difficult, but we’re going to see it through.” While good news for travellers, the multiple financial blows prompted United to chop its Q3 forecast for revenue from each seat flown a mile. <br/>