United Airlines has followed rival American Airlines in cutting flights a jobs in the US.
The carrier to cut US domestic capacity by 17% by next year and ground 100 least fuel efficient aircraft by the end of 2009.
Staff numbers are to be slashed by up to 1,600 and the airline is to shut down its low cost subsidiary Ted.
The Ted fleet of 56 aircraft will be reconfigured with the introduction of first class seating.
The airline said that with fuel at current prices, it creates a “$3 billion challenge to overcomeâ€.
A statement announcing the withdrawal of its 94-strong fleet of Boeing 737s and six 747s said: “United believes that these actions will offset that chllenge by 2009, assuming the industry as a whole takes similar actions.â€
CEO, president and chairman Glenn Tilton said: “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.â€
Chief operating officer John Tague added: “The decision to dramatically reduce our capacity profile, particularly in the domestic marketplace, while over time eliminating a fleet type, is a significant step leading to a more effective and efficient operating fleet for United in the years ahead, while improving our customer experience and reliability.â€
by Phil Davies
