United Airlines to Target $3.1 Billion in Revenue and Efficiency Gains Through 2018
United Airlines outlined plans to boost profits, cut costs, retool its systems, and win customers back with a target of $3.1 billion in revenue and efficiency gains.
The plan includes increasing revenue by $1.5 billion through better customer segmentation, improvements to its revenue management system, which has long been in need of an overhaul, and changes to its MileagePlus frequent flyer program.
The airline says that it will save an additional $1.3 billion by flying larger aircraft, installing slimmer and hence more seats on each plane, and what it called “sensible cost management.”
The Chicago-based carrier also plans to improve its operations to the tune of $300 million by increasing reliability and on-time performance.
“With the renewed engagement of our 86,000 aviation professionals, a great global network, a highly flexible fleet plan and a healthy balance sheet – all of the building blocks are in place for United to unlock its full potential,” said the airline’s CEO, Oscar Munoz.
(Photo: Accura Media Group)