Originally Posted by
tmac100
Yup! As the Eagles sang:
Every form of refuge has it's price. Humans are humans and their rationalization/private logic for their behaviour is quite amazing
United flew 42.1 million passengers in 2016. If they have to reduce their pricing by $20/flight to intice people to fly the unfriendly skies, it will cost them $842M in revenue.
I will fly Ua when they are cheaper, but it takes much more than $20 for me to risk them, more like $300/ticket on a family trip, or the other day I flew them sfo-ord in f as they were $900/rt cheaper than VX.
I expect the hit to be greater than $20/rocket, as they will need to discount more than this on many routes and load factor will also fall, plus those likely to avoid united are those not flying on the ulcc fares.
The 2Q and 3Q results will be interesting to watch.