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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive