AMERICAS: United puts off new Guangzhou service

United Airlines has postponed the launch of a nonstop service between San Francisco and Guangzhou by one year, citing surging fuel prices. The US’ second largest carrier after American Airlines said it applied to the US Department of Transportation to defer the launch, which was originally planned for June 18. "At the time United originally […]


United Airlines has postponed the launch of a nonstop service between San Francisco and Guangzhou by one year, citing surging fuel prices. The US’ second largest carrier after American Airlines said it applied to the US Department of Transportation to defer the launch, which was originally planned for June 18.

"At the time United originally applied for the right to serve the route, United paid on average US$72 a barrel of oil," the carrier said in a statement. "With prices in excess US$110 a barrel today, we face a cost increase of more than US$2 billion." "United remains committed to serving China, the airline’s fastest growing market in the Asia-Pacifi c region," it added.

The Guangzhou route was one of only two new US-China services granted by the DOT for launch this year, amid intense competition among US carriers to secure rights to serve the booming mainland China market.