The second largest airline in the United States, United Airlines, is going to axe 13% of their workforce, amounting to 7,000 staff members, and shed more than 16% of their domestic routes in order to cut their expenses due to the record high fuel prices, which continue to rise. This announcement brings their total cutbacks on jobs to almost 11,000, while they try to lower their costs for operating. United Airlines said that they will also be cutting 7% of their international routes, which include their Denver and London route, as well as the route for San Francisco and Nagoya. They have also said that they have grounded 100 of their aircrafts permanently and had to re-mortgage some of their fleet in order to raise some cash.

In unveiling the 2nd quarter results of United Airlines, Glenn Tilton, the Chief Executive and Chairman of the carrier, said that their industry has been challenged like never before due to the unrelenting oil prices, and the airline is in the process of taking aggressive action in order to offset the unprecedented cost of fuel. During the period from April to June, United Airlines had a loss of 1.36 billion pounds in comparison to the 138 million pounds during the same time period of last year. Their revenue increased to 2.7 billion pounds by 3%. Their cost of fuel has increased to 908 million pounds by 53% during the quarter. An independent consultant for the aviation industry, Chris Tarry, told The Times that there are 3 issues for the airlines around the world now, which are cash, oil, and survival. He also added that he has never seen anything quite like this in the market, and he has been in it for 30 years now.

To learn more, go to www.united.com