United Airlines to Cut More Jobs, Fleet
CHICAGO -- United Airlines said Wednesday that it’s cuttingup to 1,100 more jobs, removing 100 fuel-guzzling airplanes fromits fleet and slashing domestic capacity as it tries to cope withspiraling fuel prices.
The nation’s No. 2 carrier said it plans to cut an additional900 to 1,100 salaried, contract and management employees by the endof the year, in addition to 500 previously announced jobreductions.
Officials said the “aggressive” moves are designed to the helpthe subsidiary of UAL Corp. weather an “unprecedented fuelenvironment.” Crude oil futures prices peaked at a record above$135 a barrel nearly two weeks ago and airline fuel prices havebeen rocketing higher as well.
“This environment demands that we and the industry actdecisively and responsibly,” Glenn Tilton, United’s chairman,president and CEO, said in a statement. “At United, we continue todo the right work to reduce costs and increase revenue to respondto record fuel costs and the challenging economic environment.”
United said it plans to ground its entire fleet of 94 BoeingB737s as well as six of the company’s 747s - its oldest and leastfuel-efficient planes. It is also scrapping it’s coach-only “Ted”service and reconfiguring those planes to include first-classseats.
And the Chicago-based carrier will cut mainline domesticcapacity by 17 to 18 percent in 2009, while also scaling backinternational capacity by 4 to 5 percent.
“The decision to dramatically reduce our capacity profile,particularly in the domestic marketplace, while over timeeliminating a fleet type, is a significant step leading to a moreeffective and efficient operating fleet for United in the yearsahead, while improving our customer experience and reliability,”Chief Operating Officer John Tague said in a statement.
The nation’s airlines are struggling amid the record-high fuelprices and slashing capacity and jobs while charging customersextra fees.
American Airlines announced last month that it would cut workersand slash its domestic flight capacity by 11 percent to 12 percentin the fourth quarter, after the peak summer season is over. Thecarrier was previously planning a 4.6 percent cut.
And the subsidiary of AMR Corp. said it would charge passengers$15 for the first checked bag.
UAL shares, which have plummeted this spring, rose 5 cents to$8.58 in pre-market trading Wednesday.
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