United Airlines

Coach Travel on American and United to Become More Uncomfortable

If you have ever traveled on Allegiant, Frontier or Spirit you will be very familiar with the concept of "No Frills" fares. Buying a ticket on these ultra low-cost carriers does not come with any extras. Seat assignments and baggage allowances even for carry-on have to be purchased separately. Both American and United have plans 

Continue Reading...

U.S. Airlines Report Declines in Unit Revenue as They Expand Capacity

A number of U.S. airlines have reported declines in passenger unit revenues (PRASM) while also reporting higher capacity numbers. Airline stocks predominantly closed in the negative on Tuesday after investors were concerned that falling revenues couldn't be offset by the record-low fuel prices. Some experts even predict that airlines are repeating past mistakes of expanding capacity while accepting 

Continue Reading...

Boardroom Battle at United Airlines

While American Airlines is fighting an open battle with its pilot union, United Airlines is confronted with some troubles in its boardroom. Earlier this week, United announced the appointment of three new independent directors to the airline's 12-member board. Today, two hedge funds controlling about 7.1% of United's shares, announced that they were nominating a total 

Continue Reading...

United Misses Revenue and Earnings Estimates for Q4 2015; Reported 2015 Full-Year Profit of $4.5 Billion

Earlier today, United Airlines  held its fourth quarter 2015 investor conference call and reported its Q4 and full-year 2015 results. Oscar Munoz, who suffered a heart attack in late 2015 and recently received a heart transplant, participated in the conference, which came as a surprise to many. Mr. Munoz affirmed that he was planning to 

Continue Reading...

U.S. Airlines Raised Fares in Sector-Wide Hike

U.S. airlines have posted record profits in 2015, mainly due to two main factors. First, the price of oil hit a 11-year low this week, trading at $34.83 for a barrel of Brent crude, which is a slump by more than two-thirds since July 2014. Second, the U.S. airline industry has seen an unprecedented wave of 

Continue Reading...

Why Most Passengers Should Stay Away from 'Fare Bundles'

Ancillary revenues are important revenue source for airlines and I have previously written about the extent U.S. airlines are able to capitalize on this extra income. According to some estimates, global airline ancillary revenues were about $49.9 billion for 2014, a sharp rise compared to the 2010 figure of $22.6 billion. Essentially all money spent by 

Continue Reading...