United Airlines hopes slim seats and exclusive lounges will help generate $3 billion
Hoping to match the profit margin of his competitors, United Airlines Chief Executive Oscar Munoz laid out a plan this week to generate $3.1 billion in new revenue and savings by 2018.
One way he hopes to meet that goal is do what airlines have been doing a lot lately: Squeeze more thin-cushion seats into the economy section and offer more luxury seating for well-heeled fliers near the front of the plane.
“Myself and the entire leadership team recognize that we have not performed to the level of our own expectations, or frankly in line with our peers,” he told industry analysts in a conference call.
United has been replacing its traditional economy seats with so-called slimline seats that have thinner back cushions, making it easier to squeeze more passengers per cabin. The carrier is about halfway through retrofitting its 737 planes with the slimline seats. The entire airline will be fitted with the seats in 2018 once crews install them on the smaller fleet of 757-300 planes.
Another way to generate revenue, Munoz said, is to introduce new high-end fares.
The newest offer, an international seat dubbed Polaris, launches in December. The seat is super roomy and includes lots of extra storage area. But the real plus is that ticket holders get exclusive access to new swanky Polaris lounges that include spa-like showers and mixologists at United hubs across the country, including Los Angeles and San Francisco.
To read more about the travel and tourism industries, follow @hugomartin on Twitter.
ALSO
United Airlines pays $37 million to ex-CEO who quit amid a corruption investigation
