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United makes deeper cuts
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September 28, 2001: 4:49 p.m. ET
Airline decides to cut its schedule beyond already-reduced level
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NEW YORK (CNNfn) - United Airlines, which had been flying only about 80 percent of its pre-terrorist attack schedule, will cut its flight operations even more deeply in a month, a sign that one of the largest airlines isn't looking for a rebound in demand for flights.
United said that starting Nov. 1, its capacity will be 26 percent lower than its former schedule, as measured by the number of available seats multiplied by the miles those seats are flown. There will be a 31 percent reduction in the overall number of flights.
While carriers have been operating at only about 80-to-85 percent of their normal schedule since four hijacked commercial jets were used in the Sept. 11 terrorist attack, the average flight is still only about a third full. Airlines need about twice that level of business just to break even.
Shares of United parent UAL Corp. (UAL: up $0.35 to $18.26, Research, Estimates) gained ground along with most other airline stocks in Friday trading, although shares slipped slightly in the final minutes of trading following the schedule announcement.
"We need to get our country flying again, and we applaud the lead taken by President Bush and Congressional leaders in encouraging Americans to resume their normal lives, including their travel plans," said a statement from Jim Goodwin, CEO of UAL. "However, the reality of softer demand means that we must further reduce our capacity as we enter the fall/winter period."
The move also raises the risk that further staff cuts could be on the way. Most carriers have announced staff cuts of around 15-to-20 percent. United's cut of about 20,000 employees represented about 20 percent of its staff. A spokeswoman for United would only say that there had been no announcement about further cuts in light of the scheduled reduction announcement.
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UAL is the world's second-largest airline company behind AMR Corp. (AMR: up $1.24 to $19.14, Research, Estimates), which operates both American Airlines and Trans World Airlines. In August it had about a quarter of the capacity among major U.S. carriers, and when American and TWA are counted as separate carriers United is still the world's largest airline. 
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Three more airlines drop top exec pay - Sep. 28, 2001
Fed air payments of $2.5B arrive - Sept. 27, 2001
Continental jobs cuts will cost $60M - Sept. 26, 2001
Delta cutting 13,000 jobs - Sept. 26, 2001
Airline losses could ground U.S. economy - Sept. 21, 2001
American parent and United to cut 20,000 jobs - Sept. 19, 2001
Airline executives warn of bankruptcies - Sept. 19, 2001
Airline stocks see steep selloff - Sept. 17, 2001
Continental slashes staff, flights - Sept. 15, 2001
Airlines' cash will last only 30 days - Sept. 14, 2001
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United Airlines
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