United scraps a fifth of its fleet

The spiking costs of jet fuel has prompted United Airlines to announce that it will cut more than one-fifth of its fleet as it and its competitors struggle with soaring costs, and amid forecasts that the industry is facing a $60bn gap in funding.

United, the second-largest of the US airline companies, announced that it intended to retire 100 of its 455 aircraft. The fleet reduction will mean an increase in job losses from an earlier estimate of 500 to somewhere between 1,400 and 1,600. United’s budget brand, Ted, will be discontinued.

The airline’s chief executive, Glenn Tilton, commented: “This environment demands that we and the industry act decisively and responsibly. We continue to do the right work to reduce costs and increase revenue to respond to record fuel costs and the challenging economic environment.”

On its overall network, the Chicago-based airline will be trimming the number of passenger seats by 9-10%. The reductions impact its domestic routes, as United’s 11 daily flights to London will not be affected.

United’s fleet reduction plan follows the airline’s failed merger talks with rival US Airways. Its cutbacks were announced shortly after American Airlines, the US market leader, made public its plan to scrap 75 of its aircraft and cut services by 11-12%.

Holiday destinations, which depend mostly on coach-class passengers, are likely to suffer the most. A USA Today analyst reported that Las Vegas and Orlando will lose dozens of flights, and Hawaii, which recently saw its local carrier Aloha Airlines go bust, is likely to see a 25% reduction in service by the fall.

www.united.com