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United to cut more jobs and ground more planes
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CHICAGO - United Airlines said Wednesday that it's cutting up to 1,100 more jobs, removing an additional 70 fuel-inefficient airplanes from its fleet and slashing domestic capacity as it tries to cope with spiraling fuel prices.
The nation's No. 2 carrier said it plans to cut an additional 900 to 1,100 salaried, contract and management employees by the end of the year, in addition to 500 previously announced job reductions. The combined reductions mean the airline is cutting nearly 3 percent of its 55,000 workers worldwide.
Officials said the "aggressive" moves are designed to help the airline weather an "unprecedented fuel environment." Crude oil futures prices peaked at a record above $135 a barrel nearly two weeks ago and airline fuel prices have been rocketing higher as well.
"This environment demands that we and the industry act decisively and responsibly," Glenn Tilton, United's chairman, president and CEO, said in a prepared statement.
United said it plans to ground its fleet of 94 Boeing 737s as well as six of the company's 747s -- its oldest and least fuel-efficient planes. It previously said it was going to mothball 30 of the airplanes. It is also scrapping its coach-only "Ted" service and reconfiguring those planes to include first-class seats.
The Chicago-based carrier plans to reduce mainline domestic capacity by 17 to 18 percent in 2009, while also scaling back international capacity by 4 to 5 percent.
The nation's airlines, struggling amid record-high fuel prices, are reducing capacity and jobs and charging customers new fees.
Parent UAL Corp. shares, which have plummeted this spring, rose 91 cents, or 10.7 percent, to $9.44 in midday trading Wednesday.
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