United Airlines will join its main rivals Delta and American Airlines by introducing its own ‘entry level’ no frills fare later this year.
Aimed at the ‘purely price-sensitive customer,’ it is now an important tool for airline revenue management, said United chief revenue officer Jim Compton.
"This will allow us to compete with ultra-low-cost carriers for passengers looking for that price point. It will also help us remove some of the dilution we have in our pricing structure," Compton said.
The new stripped down fare option comes as low cost carriers like Spirit Airlines, Frontier and Allegiant continue to expand aggressively in new markets.
It will also give United a comparable alternative to Delta’s Basic Economy fare.
American Airlines is also rolling out a no frills fare this year.
The airline didn’t offer specifics on the new fare during its fourth-quarter earnings call, but similar ‘bare fares’ typically impose strict restrictions on cancelations and changes, and don’t offer assigned seating.
