United posts $537 million loss
United Airlines will cut flights and 1,100 jobs after posting a $537 million first-quarter loss Tuesday. According to the Associated Press, the loss was the biggest since the nation’s second-largest carrier emerged from bankruptcy in 2006 and below Wall Street expectations. Despite showing an 8 percent growth in revenue, fuel costs rose nearly 50 percent to $618 million. The Chicago-based company said it will cut another $200 million in costs by eliminating 500 salaried and management jobs and 600 union jobs by year’s end, the AP reported. United will also cut capacity 9 percent by the fourth quarter. “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,” CEO Glenn Tilton said in a message to employees.
JetBlue also posted a first-quarter loss Tuesday, but Reuters reports the loss was narrower than expected. Net loss for the quarter was $8 million, or 4 cents per share, compared with a net loss of $22 million, or 12 cents per share, in the same period last year. Analysts on average had forecast a per-share loss of 7 cents, according to Reuters Estimates.
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