AMERICAS: United Airlines cuts international capacity

United Airlines parent UAL Corp. said it will cut international routes by seven per cent to further cut costs after posting a second-quarter loss which amounted to, excluding one-time costs, $323 million. Combined with earlier cuts, this most recent announcement will bring United’s capacity cuts to almost 11 per cent this year, up from a […]


United Airlines parent UAL Corp. said it will cut international routes by seven per cent to further cut costs after posting a second-quarter loss which amounted to, excluding one-time costs, $323 million.

Combined with earlier cuts, this most recent announcement will bring United’s capacity cuts to almost 11 per cent this year, up from a plan of as much as 10 per cent. The new cuts will take effect in the last four months of 2009.

Revenue fell 25 per cent from a year earlier to $4.02 billion, making last quarter the second-worst for revenue since UAL left bankruptcy on 1 February 2006. Revenue in the first three months of this year was $3.69 billion.

“While there is much outside our control, including the state of the economy and the price of oil, we are focused and executing against those things we can control,” Chief Executive Officer Glenn Tilton said.