How airlines could make more money

Even as most flights are packed these days, some planes still take off with plenty of vacant seats, including in First and Business Class, effectively losing the airlines hundreds of thousands of dollars. Offering lower last-minute fares on undersold flights seems a logical solution, and carriers do it sometimes, but those attempts are utterly insufficient.

Let’s look at a recent international flight — most U.S. airlines give away free upgrades on domestic routes to fill their premium cabins. I picked a United Airlines flight on a route with traditionally heavy demand in Business Class: San Francisco to Sydney. As the above image shows, on June 19, that Boeing 747 left with 18 empty seats in Business Class, including on the upper deck.

The lowest Business Class fare on United on that route is — and has been for some time — about $6,400, which requires a 50-day advance purchase. If bought at least 21 days before departure, a ticket costs about $9,800, and about $12,300 at least three days in advance. The lowest last-minute fare is about $12,800. You do the math to figure out how much money United lost as a result of those 18 unsold seats…

United, Continental execs at odds over loyalty program

The management teams of United Airlines and Continental Airlines have never seen eye to eye when it comes to customer loyalty, and that seems to be causing trouble during their merger preparations. My inside sources tell me that Continental executives don’t quite understand United’s big emphasis on loyalty in recent years.

It also appears that Jeff Foland, who last week was named head of the combined carrier’s frequent-flier program, Mileage Plus, will have a tough job selling United’s current philosophy to his new bosses in the Continental team, which will run the company once the merger is completed, most likely around year’s end…