UAL Chief Says Airline Must Reduce Costs

UAL Corp. Chief Executive James Goodwin said in a letter to employees that its United Airlines unit may “perish” next year if it can’t stem losses that widened after Sept. 11.

The carrier wasn’t in a “comfortable situation” before the terrorist attacks, Air Transport World Magazine quoted Goodwin as saying in a report posted on its Web site. Operating costs exceed sales at four times the rate before the terrorist attacks, the report said.

United spokesman Joe Hopkins confirmed details of the report but declined to elaborate.

The letter was sent as U.S. airlines try to cut service and costs to better match declining demand for air travel. Some airlines are preparing to seek federal loan guarantees that may give preference to carriers that win employee concessions.

The company’s shares, which have declined 52% this year, fell 11 cents to $18.64.