Whats up with this? They just raised fares 2 weeks ago even though jet fuel has been stable. Now they want another increase. This is what you get when airlines merge and there is less competition. CO did raise fares when they had to, but united is just taking it to another level. Other airlines have yet to match the 2nd increase so it may get rolled back, but just the fact that they are doing this makes me unhappy with this airline.
I know merger costs are hurting the airlines, but when you aquire another business there are going to be costs. Maybe they did not anticpate these costs. They laid off a bunch of works and gave them severence packages, so in the long run they will save money. They are also painting the planes, and updating some of them to E+.
I just don't get it. Eventually we won't be able to afford to fly as it will be a luxury. If people stop purchasing these insane fares maybe they will get the hint, but who knows
At some point the carriers will hit a wall and people will stop buying. I'm surprised it hasn't happened before now but I guess everyone's doing better financially than we are told.
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Quote:
Originally Posted by JetAway
At some point the carriers will hit a wall and people will stop buying. I'm surprised it hasn't happened before now but I guess everyone's doing better financially than we are told.
Or people are still accumulating unnecessary debt on their credit cards or loans.
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Quote:
Originally Posted by giacona
...I just don't get it. Eventually we won't be able to afford to fly as it will be a luxury. If people stop purchasing these insane fares maybe they will get the hint, but who knows
It really is insane, but there isn't much we can do about it. United is focusing on business travelers, who presumably have less elastic demand for air travel (especially considering there are no substitutes in many markets) than leisure travelers.
United has basically told leisure travelers to eff off. If you're not flying on a Y/B/M fare or in a premium cabin, they really don't want your business - and they are not shy about it.
UA's clearly-stated strategy is to focus on large corporate accounts. While those fares are discounted, they also include a good deal of paid intl. F/C and other extremely lucrative sources of cash.
If OP doesn't like the fare he's offered, he shouldn't accept it and will need to seek alternatives or not fly. If he's joined by enough people, maybe UA (and others) will relent or go belly up.
UA is betting that the steady corporate revenue will beat the occasional leisure traveler or jumps ship to KettleAir, and UA's bets are likely the result of serious market research. Not that research isn't sometimes wrong. But, here what UA is doing does seem to make sense.
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Other than previously booked flights, I've dropped UA going forward. I'm also noticing that their pricing is noticably higher on my corporate travel site for the routes I fly.
Pretty easy decision to fly AA when their flights are cheaper and they are giving me Platinum EXP. I fly First allot more than I've done with UA in a long time, service is superior (CS, Gate & on the plane.)
So if you haven't gotten the message yet, I hope for your sake the price hike is the last clue you are going to need to hear before you switch. UA has proven they can continually make it worse for you, so I have no doubt they will. I'm through with this insanity. It's so much better, easier and cheaper to fly AA.
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United Raising Fares Again
Not defending this, but it's certainly not unique. Fare raises have been sparse in the little while before UA raised them a couple of weeks ago, but go back the last couple of years, and you'll see lots of instances of airlines attempting to raise fares within a week or two of the last one. Yes, before the merger. That's life.
Also not clear if it sticks until every other major carrier follows. Even if one major doesn't, his will get roles back.
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Quote:
Originally Posted by Often1
Wrong. UA made a significant profit last quarter. Either UA filed false reports with SEC or you misread.
I think what is confusing folks
UA reported Net Inc loss (448M) in Q1
UA reported Net Inc 339M in Q2
so there is a loss for H1 & Q1 but a gain for Q2
reference: http://finance.yahoo.com/q/is?s=UAL, Financials, Income Statement, Quarterly View
I don't have all the details but my bro tells me his daughter's family's trip SFO-Italy, France, currently taking place, was cancelled by her when UA upped $200 per pax allegedly for fuel surcharges, apparently after the original tix were issued.
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
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