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UAL: A $25 Charge for Choice, Flexibility and Low Fares
What's the latest news out of United Airlines? Here's the led from yesterday's release.
As part of its continuing effort to offer customers choice, flexibility, and low fares, United is announcing a new, simplified checked bag policy for customers who purchase nonrefundable domestic economy tickets.
Sounds great. What's different?
Customers who purchase nonrefundable domestic economy tickets and do not have status in Mileage Plus or Star Alliance may check one bag for free and a second bag for a $25 service fee.
But wasn't the second bag free before?
Yep.
So might there be a motivation other than "choice, flexibility, and low fares?"
United estimates that this change will generate more than $100 million annually for the company in cost savings and new revenue.
Ah.
The business rationale is solid. Only one in four passengers checks a second bag, and so the new policy shifts the costs onto those passengers who are actually adding significant weight to the aircraft. That logic would seem to be an easy sell to the majority of fliers.
So why not just say it that way right up front?
The release did not mention if the fee was refundable when the second bag is lost.
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