Ted, Discounted By Experts, Beats Targets
Source: Rocky Mountain News
Publication date: 2004-06-16
Arrival time: 2004-06-17
Ted, United Airlines' 4-month-old discount carrier, has filled more than 85 percent of its seats since taking flight, well above company forecasts, officials said Tuesday. Ted's load factors have been more than 10 percentage points above expectations, and bookings throughout this summer look "very, very strong," said Sean Donohue, United's vice president for Ted.
The airline-within-an-airline, launched Feb. 12, has experienced higher passenger loads in Denver than the system average, he said. Ted flies to eight cities from Denver, including Las Vegas, Phoenix and Orlando, Fla.
Ted turned a profit in March, but UAL Corp.'s United won't release subsequent financial information, Donohue said.
Ted has 150 daily flights across its system and expects to reach its target of 200 by mid- August.
The carrier will adjust its schedule slightly for the month of September because of seasonal fluctuations in demand, a spokesman said. It will keep the same number of flights but make such changes as switching one daily Chicago-Fort Lauderdale, Fla., departure to an additional Chicago-Las Vegas flight.
Donohue said Ted "in many cases" has generated higher revenues per flight than United did on the same routes, even though United had a first-class section and Ted is all coach.
Ted's Airbus A320 planes have 156 seats, compared with the 138- seat configuration on the main airline.
Ted, launched in the face of deep skepticism among industry analysts, is part of United's effort to compete better with discounters and emerge from bankruptcy by year's end.
Chicago-based United is Denver's dominant carrier and the nation's second-biggest airline after AMR Corp.'s American.
Publication date: 2004-06-16
Source: Rocky Mountain News
Publication date: 2004-06-16
Arrival time: 2004-06-17
Ted, United Airlines' 4-month-old discount carrier, has filled more than 85 percent of its seats since taking flight, well above company forecasts, officials said Tuesday. Ted's load factors have been more than 10 percentage points above expectations, and bookings throughout this summer look "very, very strong," said Sean Donohue, United's vice president for Ted.
The airline-within-an-airline, launched Feb. 12, has experienced higher passenger loads in Denver than the system average, he said. Ted flies to eight cities from Denver, including Las Vegas, Phoenix and Orlando, Fla.
Ted turned a profit in March, but UAL Corp.'s United won't release subsequent financial information, Donohue said.
Ted has 150 daily flights across its system and expects to reach its target of 200 by mid- August.
The carrier will adjust its schedule slightly for the month of September because of seasonal fluctuations in demand, a spokesman said. It will keep the same number of flights but make such changes as switching one daily Chicago-Fort Lauderdale, Fla., departure to an additional Chicago-Las Vegas flight.
Donohue said Ted "in many cases" has generated higher revenues per flight than United did on the same routes, even though United had a first-class section and Ted is all coach.
Ted's Airbus A320 planes have 156 seats, compared with the 138- seat configuration on the main airline.
Ted, launched in the face of deep skepticism among industry analysts, is part of United's effort to compete better with discounters and emerge from bankruptcy by year's end.
Chicago-based United is Denver's dominant carrier and the nation's second-biggest airline after AMR Corp.'s American.
Publication date: 2004-06-16
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