United anticipates $3.1 billion in excess income from cuts and fewer delays

United anticipates $3.1 billion in excess income from cuts and fewer delays

CHICAGO — Business is lookin’ good for United, which recently announced an expected US$3.1 billion in additional operating income per year by 2018.

According to Reuters, the Chicago-based airline, whose shares rose 4.1% in early trading, said the influx is largely attributed to several key initiatives to delay fewer flights and lure back corporate customers from rival airlines, particularly Delta Air Lines. United, the third-largest U.S. carrier in terms of passenger traffic, has been outshone by Delta, the #2 airline, in on-time flights, satisfaction and profit margins.

United revealed that it anticipates $1.5 billion a year by 2018 from seating and airfare initiatives. Approximately $150 million of that will be generated by a planned fare class that will prevent passengers from booking seats in advance; the rest would come from cuts (seats that weigh less and can accommodate more rows of people) and improved operations.