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Nov 8
United Airlines Might Ground Some Planes to Reduce Costs

With oil approaching $100 a barrel, the airlines are feeling the pinch.  American has already raised some prices $20.  However, United Airlines (UAUA) might be going one step further and grounding some of their fleet to cut costs. 

"Either the industry passes on the higher fuel prices or we're going to have to lower capacity, but you have to make the equation work," said United Airline’s Chief Financial Officer Jake Brace. 

UAL LogoThe Chicago based carrier might ground up to 100 of their 460 mainline planes to cut costs.  Nearly a fifth of United’s fleet is debt free, giving them the option to ground those planes to cut capacity.    

United is looking at keeping capacity growth fairly flat at just 1 percent next year.  Cuts in domestic capacity will be offset by increases in international traffic. 

Maybe merge with Delta... apparently they are looking for a partner.   

The Boston Globe 


2 Comments/Trackbacks




Potentially grounding 100 out of their 460 planes? Yikes, that's a rather hefty amount...things must be worse than implied if they're seriously considering doing that.

I wonder if Air Canada has any similar plans up here...they've certainly not had the greatest of times so far since the turn of the century.

Things might be interesting if the price of oil climbs more and more. NWA's CEO has said they might park some of their DC-9's given the price of oil.

A little interesting to see all of these airlines willing to park planes because of the price of oil, instead of investing in newer fuel efficient planes.

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