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Rising Gas Prices Cause Airliner to Cut Jobs

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After reporting a $537 million loss in its first quarter, airliner UAL Corp. plans on cutting 1,100 jobs and lowering its 2008 spending. Of the 1,100 jobs, 500 will be salaried and management jobs, and 600 will be union jobs.

Rising fuel prices are thought to be the biggest factor in UAL's losses. According to CEO Glenn Tilton, "Although both our revenue performance and our non-fuel cost performance were good this quarter, they were not enough to offset the significant and rapid rise in fuel prices."

Glenn also said that "The path to sustainable profitability requires us to fundamentally overhaul every facet of our business."




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 UAL Corp.  plans  costs  cuttings  fuel prices  spending  management


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