Chicago is My Home

04
Jun

United Announces Major Reductions, Cuts 1,100 Jobs, Grounds 100 Planes

Author: Adam Fendelman, Category: Travel

CHICAGO – The skies grew cloudier on Wednesday at UAL’s United Airlines as the carrier said it will cut 1,100 additional jobs and ground 100 inefficient airplanes in an effort to shore up company losses.

United CEO Glenn Tilton called the decision aggressive but necessary in light of rising fuel prices and a softening market.

“This environment demands that we and the industry act decisively and responsibly,” Tilton said in a Wednesday 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.”

Tilton says current fuel prices are costing United $3 billion in additional operating costs. The company hopes the changes it has put in motion will pull United out of the red by 2009.

United’s reductions follow similar cuts being made by its competition. On May 21, 2008, American Airlines announced it will trim domestic flights by as much as 12 percent and retire 75 fuel-guzzling planes.

By Megan O’Neil