United to cut 7% of international flights
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United Airlines’ parent company, UAL Corp, has said it will reduce overseas flying by 7% to trim costs after posting a second-quarter loss, Bloomberg reported. The Chicago-based carrier posted a US$323 million loss for the period. That represented an improvement from the US$368 million loss seen a year previous, and was better than the median estimate by Bloomberg analysts.In an effort to cut costs, United will cut trans-Pacific routes by 8%, while trans-Atlantic capacity will drop by 7%, according to Chief Operating Officer, John Tague. “Our revenue results were severely impacted by the breadth and depth of the global recession,” Tague was reported saying. Tague added however, that United has no immediate plans to cut more jobs due to the capacity change. United’s cuts will shrink seating capacity on the third-largest US airline by almost 11% this year as the recession curbs business travel. The moves take effect in the last four months of 2009.
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