United expects $3.1 billion a year from no-frills airfare, fewer delays

(Reuters) - United Continental Holdings Inc on Tuesday said it would generate billions more per year from initiatives including no-frills fares it will sell to air travelers and that a key revenue measure would not fall as much as previously forecast for the second quarter.

United, the third-largest U.S. airline by passenger traffic, said it expected an extra $3.1 billion in operating income per year by 2018 from the ongoing initiatives, which include steps to delay fewer flights and win back corporate customers from rivals. It also said passenger unit revenue would fall between 6.5 percent and 7.5 percent from a year earlier, compared with prior expectations for a decline of as much as 8.5 percent.

(Reporting by Jeffrey Dastin in New York; Editing by Lisa Von Ahn)

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