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Home  >  Travel  >  United Cuts International Routes, Will Focus on Domestic Travel
Travel

United Cuts International Routes, Will Focus on Domestic Travel

Matthew Klint Posted onDecember 24, 2016 5 Comments

An interesting Chicago Tribune article details how United will focus more on domestic travel in 2017.

United Domestic ORD Lobby Bank

With yields down on international routes thanks to low-cost competition, United will look inward. Strategies includes:

  1. Strengthening its existing hubs
  2. Continuing the trend of more mainline and less regional jet service
  3. Banking flights to make hub connections easier
  4. Basic Fares, that are essentially a hidden fare increase since these fares will cost the same as the cheapest fares now but entitle passengers to fewer perks and services
  5. Seriously explore a premium economy product
  6. More dynamically set fares with new technology
  7. Improve operational reliability

United realizes that while status quo leads to profits in an era of cheap oil, it is leaving too much money on the table. While focusing so much on international travel, it has fallen behind the competition in terms of domestic strength. Still, most of these strategies are merely talking points that would fit for any airline, any year.

Details and Analysis

In reference to creating departure banks to ease connectivity, Scott Kirby, President of United said:

This isn’t about carrying more passengers in nonstop markets, it’s about competing for the sum of a whole bunch of small markets.

Great. But remember Scott, this has been talked about for over two years now. Are we actually going to see it happen? I hope that Kirby’s reiteration of this policy change comes in light of now presiding over two airlines with a hub-and-spoke system out of Chicago O’Hare.

> Read More: Let’s Give Scott Kirby a Chance

Julia Haywood is on record stating that United will seriously consider a premium economy product. With three-cabin first class being pulled out during Polaris retrofits and both American and Delta already implementing a premium economy product, I see that as not just a serious consideration, but inevitable.

And yet, maybe not? The LOPAs (Layout of Passenger Accommodations) for the fleet have already been submitted. United will make its 777 economy class 10-across. Will it really modify plans now to add a product that has underperformed for Singapore Airlines and Lufthansa?

What kind of technology will United use to set fares? Kirby added–

Systems that can better assess how much passengers are willing to pay for tickets could lead to higher fares on peak travel day flights that often sell out, but could also mean lower fares on flights with empty seats.

United Cuts International Routes

Not present in the article is news that United is trimming its international route map. Changes include:

  • Seasonal service between Newark an Oslo will not return in 2017
  • Seasonal service between Washington and Manchester will not return in 2017
  • Year-around service between Newark and Hamburg (recently upguaged from a 757 to 767) will become seasonal

I expect more cutbacks to come as Norwegian has been given authority to operate out of Dublin and will continue to pummel the legacies with cheap fares that erode yield to the point of making flying unprofitable even with cheap fuel.

Indeed, it will be an interesting year.

(Tip of the hat to EXLEFTSEAT on Flyertalk)

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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5 Comments

  1. Joey Reply
    December 24, 2016 at 2:08 pm

    In addition, the USD is quite strong right now against the GBP and EUR that will most likely decrease the number of European tourists travelling to the USA next year.

  2. Martinplas Reply
    December 24, 2016 at 2:15 pm

    United has abandoned their FF program and copied Delta and will follow with revenue based earning. Hopefully they will soon regret their misguided treatment of elite members now that being loyal to an airline for their loyalty in return means very little. I shop price and now enjoy saving my money.

  3. BAE146 Reply
    December 24, 2016 at 4:02 pm

    Banking flights for improved connections is fine if the flights are on time. Not so much when they are not. I live in a city dis-served served by United Express.

  4. Carl Reply
    December 24, 2016 at 4:56 pm

    Just like with the other “big” domestic carriers, UA is racing pell-mell to the bottom, customer serviee-wise. With the Big Three, loyalty only goes one way.

  5. Tony Reply
    December 24, 2016 at 10:54 pm

    Basic fares are not a hidden price increase because they will still have to compete with the likes of spirit. Delta fares on OTAs are usually if not always lower than united fares in similar markets and those delta fares are their basic coach fares.

    Revenue based FF program rewards the most valuable customers (the ones that spend the most) so the complaining by bitter mileage runners obviously will fall on deaf ears.

Leave a Reply to BAE146 Cancel reply

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