Bracing for more air travel headaches
In the latest move from the battered airline industry, United Airlines said Wednesday it will reduce its fleet by 100 planes by 2009 and will cut 1,400 to 1,600 jobs to stave off losses related to fuel costs. This means that passengers will pay even more to fly as airlines scramble to curb their losses from escalating fuel prices, analysts said. To add insult to injury, the planes will also get more crowded as airlines reduce capacity. The money-losing airline industry is fighting for survival under the weight of escalating oil prices. United said it is making the cuts to help deal with an additional $3 billion in fuel costs this year. On Monday, the International Air Transport Association, representing 240 carriers, projected that soaring fuel prices would cause the industry to lose $2.3 billion this year. United is the latest to announce cuts to jobs and planes, but it won't be the last, experts warn.
See "Bracing for more air travel headaches", Aaron Smith, CNN Money, June 3, 2008