United Airlines has presented plans for long-term earnings growth through strategic initiatives that include improving network connectivity and revenue management, broadening product segmentation and introducing additional customer enhancements, the company said.
The company said by maintaining disciplined cost control, the strategy is expected to generate USD4.8 billion in earnings improvement by 2020.
The company has introduced new basic economy fares as an additional choice for customers and plans to update its narrow body order book, reducing capital expenditures by USD1.0 billion by 2017-2018.
United said it is improving its revenue management system to more accurately forecast demand to better maximize profitability on each flight. The company expects these system improvements to drive USD900 million of incremental revenue by 2019.
United Airlines and United Express operate more than 4,500 flights a day to 339 airports across five continents. In 2015, United and United Express operated more than 1.5 million flights carrying more than 140 million customers. United Continental Holdings, Inc. (NYSE: UAL) is United´s parent company.