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People watch as a United Airlines jet passes the air traffic control tower at Los Angles International Airport (LAX) during take-off in Los Angeles, California.
United Continental will become the first major U.S. airline to limit low-fare customers to one carry-on bag that fits under a seat, and it will defer dozens of aircraft deliveries from Boeing in an array of initiatives to boost profit, the company said on Tuesday.
The announcement may frustrate flyers who already feel burdened with travel restrictions and fees from airlines.
United said customers who buy its cheapest fares will not be assigned seats until the day of departure, meaning people on the same ticket may be split apart. United will also prohibit these travelers from carrying on bags that can only fit in overhead bins, and they will not accrue miles toward elite status.
The company expects the new moves will add $4.8 billion to its operating income per year by 2020, though the figure does not include rising wages. Fare initiatives like "Basic Economy" will account for $1 billion of this, as more customers pay to check bags or select higher fares that give them two free carry-ons.
It was unclear if the move by United — No.3 in the United States by passenger traffic — would prompt similar bag limits from rivals. However, airlines have frequently copied each other in the past, like when they added fees for checked luggage.
"Customers have told us that they want more choice and Basic Economy delivers just that," said Julia Haywood, United's chief commercial officer, in a news release.
The boarding process will also be faster because fewer customers will be searching for overhead bin space, United said.
credit Reuters
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