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United cuts 1,000 jobs
In a cost-cutting move, United Airlines is eliminating at least 1,000 jobs by the end of the year, says CEO Glenn Tilton.
The employees laid off from the US’s second largest airline represent about 11% of its salaried workers and nearly 2% of the company’s overall work force of about 57,000.
United previously had set a target of $400 million in cost reductions but has only now come up with specific job cuts.
United, a unit of UAL Corp., has repeatedly acknowledge its costs were too high even with its three-year bankruptcy restructuring.
Tilton told analysts in New York that the job cuts are part of a $100 million reduction of general and overhead expenses.
Said Mr Tilton:
“We’re going to reduce our costs further, we’re going to take full advantage of the network that we have preserved to optimize our revenue, and we are going to deliver to our customers a consistently superior and consistently improving customer experience.”
Soaring oil costs continue to impact United but Mr Tilton said the airline was adjusting its schedule although he did not say which flights might be dropped.
“Said simply, some long-haul flights that worked at $50 a barrel don’t fly at $65 a barrel,” he said.
United costs per seat mile, excluding fuel and special charges, are 7.52 cents. Mr. Tilton said that was competitive in the marketplace.
Report by David Wilkening
David
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