United Airlines said today it would slash its domestic capacity by 14 per cent in the fourth quarter, remove 100 planes from its fleet and cut up to 1,600 jobs as it grapples with soaring fuel costs and a weakening US economy.
The moves, which extend previous plans to cut staff and phase out old planes, represent about a 3 per cent reduction of United's staff of 55,000 and a reduction of about 22 per cent of its 460-plane fleet.
The company plans to remove 100 aircraft from its mainline fleet, including the 30 previously announced Boeing 737s. UAL said it expects to retire all of its 94 single-aisle Boeing 737s if it can reach a deal with leasors. UAL also will retire six Boeing 747 jumbos.
Over the 2008 and 2009 period, UAL will reduce its mainline domestic capacity between 17 per cent and 18 per cent, and consolidated capacity - which includes regional flying - between 9 per cent and 10 per cent.
United, the second largest US airline, has been battered along with the rest of the industry by soaring fuel prices. UAL lost $537 million in the first quarter and has been in merger talks with rivals in an effort to offset its fuel bill. UAL recently ended merger talks with US Airways Group, saying it would not seek a merger now.
"With fuel at historically high levels, United and our competitors need to redefine ourselves in this marketplace. The answers are not easy, yet this environment demands that we and the industry act decisively and responsibly," UAL Chief Executive Glenn Tilton told employees.