Morning Snapshot: 10/30/23

United Boarding Changes

United is Changing Its Boarding Sequence

United will start boarding airplanes by window seats, then middle seats, then aisle seats (WILMA). Frequent flyers are up in arms, but the change only applies to Groups 4, 5, and 6. The purpose of the change is to save 2 minutes in the boarding process. This change should reverse a rise in boarding times that have occurred since United implemented more strict baggage fees. In response to the fees, travelers are more likely to bring free carry-on bags, which slows the boarding process.

Delays Worsening

United is wrestling with a problem that has been growing for airlines since the COVID pandemic: increasing delays. The stated cause for lengthening boarding times is carry-on bags. The unstated motivation is that there are more delays due to crew shortages, which are not going to be resolved soon.

Source: FAA

The Savings

The direct savings from the change in boarding protocol comes from cutting operating costs for the aircarft, which should add up to $360mm for United. Airlines also incorporate passenger time savings into reducing wait times at a rate of $47 per hour, which gives customers a theoretical $150mm in savings. The real savings accrue to the customers who no longer check bags in order to avoid fees. Assuming 20% of passengers no longer check bags that were checked before, they will be able to enjoy $1bn in savings a year while arriving at their destination at the same time as before…assuming this boarding change works.