United expects US$3.1b a year from no-frills airfare, fewer delays
United Continental Holdings will generate billions of dollars from no-frills fares, fewer delayed flights, cost cuts and other efforts, the airline said Tuesday. The announcement, which sent United shares up nearly 3%, detailed some plans to catch up to larger rival Delta Air Lines. United said it expected an extra US$3.1b in operating income per year by 2018 from the programs, although rising wages, fuel and airport costs would partly offset that. The company also said passenger unit revenue would fall 6.5% to 7.5% in Q2 from a year earlier, compared with earlier expectations for a drop of as much as 8.5%, as sales to Latin America, Europe and the Middle East have been higher than expected. The estimate of the operating income gain marks a new push by United for transparency with investors. <br/>
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United expects US$3.1b a year from no-frills airfare, fewer delays
United Continental Holdings will generate billions of dollars from no-frills fares, fewer delayed flights, cost cuts and other efforts, the airline said Tuesday. The announcement, which sent United shares up nearly 3%, detailed some plans to catch up to larger rival Delta Air Lines. United said it expected an extra US$3.1b in operating income per year by 2018 from the programs, although rising wages, fuel and airport costs would partly offset that. The company also said passenger unit revenue would fall 6.5% to 7.5% in Q2 from a year earlier, compared with earlier expectations for a drop of as much as 8.5%, as sales to Latin America, Europe and the Middle East have been higher than expected. The estimate of the operating income gain marks a new push by United for transparency with investors. <br/>
