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In response to
"Among other reasons, they've lost customers to another airline (unnamed, but it's American) that didn't have Basic Economy on most routes"
by
ty97
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more
Posted by
ty97
Sep 6 '17, 08:02
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Aggressive pricing by ultradiscount carriers accounted for 1 point of the decline, and United's "basic economy" pricing was worth another point, the company said.
United rolled out its rock-bottom basic economy fares nationwide in May to compete with the discounters. Rival American Airlines Group Inc., has been slower to bring its similar offering to market, resulting in a market-share loss to American, United said without naming the larger airline.
United also said the basic economy fares have put pressure on discounters seeking a price advantage. Since late July, they have reduced fares substantially in United's hubs, the company said, and United has matched those fares. On Tuesday, three other carriers also reined in their third-quarter guidance.
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