Fuels Prices Weigh on UAL, JetBlue |
| Wall Street Journal - Apr 22, 2008 |
UAL Corp.'s first-quarter net loss ballooned as jet-fuel costs soared 51% and the United Airlines parent said it would shrink capacity and cut jobs amid an increasingly harsh airline-operating environment.
Meanwhile, discount carrier JetBlue Airways Corp. posted a narrower loss even as its fuel bill surged 62%. It also said it will start charging a $20 bag-check fee for every second bag checked. AirTran Holdings Inc. swung to a loss.
United plans to shrink its domestic mainline capacity about 9% by year's end, following a 5% cut in the fourth quarter, and eliminate 30 narrowbody aircraft from its operations, 10 to 15 more than announced last month.
UAL, of Chicago, will now target $200 million in non-fuel cost savings, in addition to the $200 million announced earlier this year. As part of that, it expects to cut about 1,100 jobs -- 500 salaried and management workers and 600 unionized employees. The company is also reducing planned 2008 capital expenditures by approximately $200 million.
Read Full Article from Wall Street Journal
- Posted: 2008-04-22 08:55:04
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