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United Airlines Cuts Workers, Airplanes Due to High Fuel Costs
Published in Saudi Press Agency on 05 - 06 - 2008

United Airlines announced that it is cutting up to 1,100 more jobs, removing an additional 70 airplanes from its fleet, and reducing domestic capacity as it tries to deal with soaring fuel prices.
The second-largest U.S. air carrier said it plans to slash an additional 900 to 1,100 salaried, contract, and management workers by the end of the year in addition to 500 previously announced job cuts. The combined reductions mean the airline is cutting almost 3 percent of its 55,000 workers.
Company officials said the “aggressive” moves are designed to help the airline handle an “unprecedented fuel environment.” Crude-oil futures peaked at a record above $135 a barrel two weeks ago and jet-fuel prices have been soaring as well.
“This environment demands that we and the industry act decisively and responsibly,” United Airlines chief executive Glenn Tilton said in a statement. “At United, we continue to do the right work to reduce costs and increase revenue to respond to record fuel costs and the challenging economic environment.”
United Airlines said it plans to ground its entire fleet of 94 Boeing B737s as well as six of the company's 747s—its oldest and least fuel-efficient airplanes. It previously said it would ground 30 jetliners. The airline also said it will cut domestic capacity by 17 to 18 percent in 2009 while reducing international capacity by 4 to 5 percent.


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