Michael Strickland's blog on all things travel: news, deals, destinations, dreams and more.

Wednesday, June 4, 2008

United to ground planes, cut routes

More evidence that the airline industry landscape a year from now will be radically different: to slow financial hemorrhaging due to fuel costs, United will retire 100 planes and lay off more than 1,400 employees [full story]. The removal of the planes from United's fleet will force a major reduction in routes and a 17% decrease in capacity, which is sure to have a ripple effect throughout the industry—which means, for us consumers, fewer seats and therefore even higher fares.

This and other airline news I've reported is only the beginning. Yesterday, the International Air Transport Association projected a $2.3 billion loss for the airline industry this year, due to soaring fuel costs. They can't recoup that kind of loss by charging $25 for a second checked bag, or even installing coin-operated lavatories. Stay tuned for more big changes in the airline industry.

6/5 UPDATE: Continental quickly followed United in cutting 3,000 jobs and grounding 67 airplanes. [story]

Labels: ,


Post a Comment

<< Home