Artpen100

Revenue management software is not perfect. The term GIGO applies. In the best of times, it can come up with illogical pricing in particular circumstances because of incorrect assumptions. I've go to think the current environment has turned many of the assumptions on which it is based upside down, and this is the result.

bhunt

Would cargo and mail contract commitments have anything to do with fares?

When you drop schedule from 20 to 5 or 5 to 1 on a route but still have a similar amount of cargo you have to move daily makes those bellies full.

eng3

I had inquired about this (possible upgauge due to full flights) in a previous thread and it seemed the consensus was that most were ghost bookings and it was unlikely they'd increase gauge.
Can you reference where it was reported? I'd be interested in seeing more details (if any exist)

Often1

What we don't know is whether UA is selling seats at $1,000. If so, then it is far from non-competetive and it is AA/DL who are the fools. Right now, a lot of flying is being done for essential purposes only. If something is essential, the passenger (or employer) may well be price-insensitive.

Remember that capacity is down not because people don't want to fly, it's because they cannot fly (whether legally or practically). Dangling a cheaper fare won't necessarily get someone who is worried about COVID to fly.

LittleBird

I still fly regularly TUS-MSY for work.
AA and DL are between $98-$123/one way and UA, if they have a flight, over $250 and frequently into the $400s. Weird.
Glad this thread popped up as I’d been hunting around for any rhyme or reason...

SQLInjection

My plan was to get gold/plat status and then do a challenge to switch to Delta... but it may not even be worth it.

CalRef

Trying to find R/T from Louisville to Palm Springs in late June, I found zero UA flights within 7 days either way of my preferred dates. If I went back to early June, I could find 3 stop flights for about $1,000. By moving into early July, the fares dropped to under $300. Does this mean UA is dramatically increasing the number of flights beginning in July? American had my exact dates for $370 and Southwest into ONT had round trip at $238.

UA_Flyer

If the fare difference is $600 (300% of the AA fare), there is absolutely no point flying UA, especially elites status gets one more year extension.

Interesting question, but I cannot figure out why. Could you elaborate why you think it may be related? I would have thought if there is a greater demand to cover the cost of the flight, then the passengers fare be just incremental revenue.


Yes, you are right, perhaps get DL status first, then see if UA will do a match or challenge for you.

Get a status with the cheapest cost first!

zombietooth

I bought a ticket a few weeks ago, EWR-SNA, for the 4th of July weekend for ~1K in F on UA. I just looked at the same flights today and it would cost 1.8K on UA vs 1K on DL and AA. It must be that people are buying tickets and reducing inventory. What other explanation could there be?

Aussienarelle

The cynic in me says that United knows they have a captive market with all the ETCs. Those with cash will buy the cheaper airfare on OALs.

I am waiting for the time UA says price for payment by ETC and price for payment with cash. Cash is king in this environment and United knows that those of us with ETCs would rather use those than fork over cash for a cheaper airfare.

Again, just my cynical view of the world as seen by United.

jsloan

UA's domestic schedule has only been updated through July 5. I expect that many of the July flights you're currently seeing will disappear from the schedule within a week, or two at the outside.

That would be an extremely counterproductive measure for UA. As I stated, they have a cash burn problem, not a balance sheet problem. Giving cash purchasers an incentive to choose another airline, while giving people with ETCs a reason to use them, only exacerbates their problem.

You mean, in direct contravention of the terms for an ETC?

I suppose they might offer the ability to buy discounted ETCs for future travel -- e.g., buy a $1000 ETC for $900 -- but I suspect that the market for those would be mostly limited to people who were going to fly anyway... and so they'd basically just be costing themselves money.

Which is why your plan makes no sense. As you state, they want cash -- so why would they discount their fares?

LarryJ

Doesn't it seem strange that UA is simultaneously being criticized for flying airplanes with too many passengers onboard and for having fares that are too high?

Aussienarelle

I unfortunately have a number of ETCs. Am looking at booking flights and United is more expensive. In the past I was willing to pay a small Premium to United to retain my 1K status but that incentive is no longer there.

The price is key for me as all my own money. I am torn between wanting to use the ETCs (albeit they have a two year period in which to be used) due to my concern about long term viability of UA but intensely dislike having to pay UA a significant premium to use the ETC vs paying cash to OAL.

I was not aware there was a term with the ETCs that prohibited UA offering a lower price for cash vs ETCs. Thank you for that piece of information.

As I stated I am quite cynical about UA these days, and you are probably right that they are not capitalizing on the captive market for ETCs.

Often1

There may come a day when the market pushes UA to get rid of the overhang created by ETC's. But, that is not for a long time. UA's worst current nightmare is overcrowded flights full of passengers paying with anything that is not cash, e.g. ETC's and miles, making it less appealing for cash customers to fly UA. UA needs cash and pushing those passengers to other carriers is a poor idea.

narvik

Indeed!
Although, for at least one flight where United was criticized for flying a FULL plane, a few dozen of the passengers were flying for free.

Advertising flying medical staff for free generates good press. Advertising blocked middle seats generates good press.
Having the former turn the latter into a lie: bad press!
United never quite thinks their actions through.