FlyerTalk Forums - View Single Post - Is UA planning direct flight from east coast to Shanghai?
Old May 7, 2005 | 9:56 am
  #18  
CraiggForrester
 
Join Date: Dec 1999
Location: USA
Posts: 294
Originally Posted by magiciansampras
Not necessarily. There are a number of routes that UA is flying that are not making money.

I'm not certain, but I think when a flight or route is termed "not money making" the speaker is referring to passenger operations. However, I believe that UA continues such routes because of tremendous revenues generated by its cargo yields. The only other reason I can contemplate for United to continue an unprofitable route would be for the benefit of its Mileage Plus members: a couple of people have asserted that United actually loses money on its Hawaiian destinations but can't dispense with them because Hawaii is United's most sought-after redemption. Frankly, I doubt that United cares at all about what its Mileage Plus members seek, especially since UA is adding numerous flights to the islands, including nonstops from ORD to HNL; I suspect that its Islands flights are extremely profitable.

Unfortunately, when you dissect the company's consolidated annual report and notes you still can't decipher which, if any routes and/or flights actually lost revenue operationally, because they expense passenger expenses such as FA salaries, meals, entertainment and blankets, along with the payload for cargo which, of course, should not be associated with snacks, berverages and ticket counter expenses.

Even when United flies one of its fleet empty for the sole purpose of positioning the equipment where it is needed, I believe that it takes into consideration the cost of doing so: no decision within United's control is made with the countenance to lose money.

If anyone has intelligence to the contrary I'd genuinely appreciate a heads-up!

-Craigg
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