9 Responses

  1. DaninMCI
    DaninMCI at |

    Why didn’t he make it simple with one powerpoint slide that says:

    We raised tickets $50
    $50×7,500,000=$375,000,000 per month more

  2. richardc020
    richardc020 at |

    This is the sort of excellent detailed reporting you’re famed and trusted for bringing us so thank you once again.

    I have to wonder how many folks UA hired to so enough pricing analysis or whether they just rolled it into their existing automated models. Either way, they worked very fast indeed to deploy domestically. Surely, international numbers are in progress.

    The profits are known to management such that we’ll see it grow. One wonders whether they’ll go all fee all the time.

  3. unavaca
    unavaca at |

    Doesn’t hurt that Google Flights only lists UA Basic Economy; there’s no way to specify regular economy only.

  4. Kenny
    Kenny at |

    Did u know those basic fares already existed? All they did was add restrictions.

  5. Recap: Giftcards.com Changes, Umrah Visa Denial & More - Doctor Of Credit

    […] Two interesting numbers on United’s Basic Economy product by Wandering Aramean. It’s funny how the consumer-facing side of United says one thing “cheaper flights for everybody!” and the investing side says another “extra $1bn in revenue”. […]

  6. Michael D
    Michael D at |

    I haven’t seen a noticeable bunch of people in Group 5 with only one bag.
    I haven’t heard any announcements advising/warning people with Basic Economy to be boarding with only one small carry on and not to place it in the overhead bin.
    Will see.
    Anyone seen this 30% at the gate?
    Is this a true discount or has the lowest non Basic Economy fare just gone up in price. If a true discount are they pulling passengers away from the Discount Airlines or just discounting their existing customer base.

  7. George
    George at |

    @Michael- on a small unscientific sample, it looks to me like the latter- the basic economy fare is similar to the old lowest fare, in the markets that I monitor. So really just a semi-concealed price increase.

    But Seth, that’s what I think is wrong with your analysis- you don’t take into account the impact of a price increase on demand. If the average ticket price is $10-$50 higher for 70%, surely some of that demand shifts to alternative options. Thats probably why their estimate of the benefits are lower.