Via The Flying Critic:
United Airlines just reported a massive first quarter loss of $542 million. From AP:
The Chicago-based company says it will cut another $200 million, including eliminating 500 salaried and management jobs and 600 other jobs by year’s end. UAL also says it will cut capacity 9 percent by the fourth quarter and take 30 aircraft out of its operating fleet.
No wonder United added $50 to their change fee and brought back the Saturday night stay requirement for many routes last Friday. They are bleeding cash. Fast.
Man, this really sucks. The raw numbers just seem awful, although I guess $80mill negative cash flown isn’t that bad. I think UA will basically have to merge, since it seems like their upper management team is having wet dreams about a merger and doing little else to improve the company if that doesn’t happen. I’m sure Q2 will only be worse, so something’s gotta give and it has to do so fast!