Chicago is My Home

22
Jul

United’s UAL Corp. to Slash 5,500 More Jobs, Bolster Available Cash Flow

Author: Adam Fendelman, Category: Travel

CHICAGO – United Airlines parent company UAL Corp. announced on Tuesday steps to bolster its cash strength and cut its staff following $2.73 billion in second-quarter losses.

UAL attributed the losses, which were lower than predicted by some analysts, to non-cash accounting charges and high fuel prices. UAL says it has reached an agreement to extend its contract with Chase, which is United’s co-branded bank-card partner, that will give the airline access to a $1.2 billion cash flow.

The company also announced on Tuesday plans to further reduce its staff by 5,500 in the next 18 months. During the second quarter, UAL said it would cut 1,500 salaried and management jobs. UAL shares rose more than 50 percent on Tuesday following the company’s announcement.

By Megan O’Neil