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United Airlines outlines path for increasing long-term shareholder value

20-Nov-2013 5:28 AM

United Airlines announced (19-Nov-2013) plans to reduce costs, increase revenue and enhance profitability, launching initiatives to reduce costs by USD2 billion p/a. The plan includes reducing fuel consumption, increasing productivity, improving maintenance processes, and optimising distribution methods. United aims to increase pre-tax earnings over the next four years and begin allocating capital to shareholders by 2015. The carrier plans to increase ancillary revenue by approximately USD700 million, with a goal of generating more than USD3.5 billion by 2017. United also plans to leverage its trans-Pacific and trans-Atlantic joint ventures, expecting to improve its trans-Pacific network by redeploying widebody aircraft, and commencing a second daily Houston-Tokyo service, subject to government approval, and eliminating Seattle-Tokyo service. United will also eliminate Tokyo-Bangkok Boeing 747 service and downgauge Tokyo-Seoul services, reallocating the long-haul aircraft to more profitable routes. Using aircraft previously operated on intra-Asia routes, United is building its trans-Atlantic network with Houston-Munich service and new Washington Dulles-Madrid and Chicago-Edinburgh seasonal routes, subject to government approval. [more - original PR]