WASHINGTON (Reuters) - UAL Corp (UAUA.O), parent of United Airlines, plans to eliminate up to 400 more jobs as it continues to shrink its operations due to skyrocketing fuel costs, the company said on Friday.
United said in a statement it had reached an agreement with the International Association of Machinists for a voluntary retirement program for veteran ground workers, including customer service agents and bag handlers.
United said it would continue to explore "viable alternatives" to furloughs but did not rule them out if the early out measure did not reach its goal of up to 400 employees.
United and other big carriers are slashing domestic flights as well as the jobs needed to operate and support them to address a 50 percent increase in jet fuel costs this year.
United has previously announced plans to trim 950 pilots, about 600 flight attendants and 1,500 salaried workers.
Industry officials project that airline financial losses could top $10 billion this year without relief from fuel price increases, possibly leading to more bankruptcies.
Airlines have asked their customers to lobby Congress on legislation that would more tightly regulate speculative futures trading, which carriers as well as some lawmakers and energy experts blame for higher oil prices and recent price spikes.
Crude prices topped $145 a barrel on Friday.
James May, chief executive of the industry's top trade group, the Air Transport Association, led a group of travel industry executives on Friday in a formal plea to lawmakers to enact energy trading legislation before the August congressional recess.
May estimated that a $30 per barrel reduction in oil prices could be enough to stabilize an industry that is bleeding cash. But he said reestablishing lost jobs and services would require a steeper price decline.
(Reporting by John Crawley; Editing by Mark Porter and Gary Hill) 07/11/08 18:30 ET
United said in a statement it had reached an agreement with the International Association of Machinists for a voluntary retirement program for veteran ground workers, including customer service agents and bag handlers.
United said it would continue to explore "viable alternatives" to furloughs but did not rule them out if the early out measure did not reach its goal of up to 400 employees.
United and other big carriers are slashing domestic flights as well as the jobs needed to operate and support them to address a 50 percent increase in jet fuel costs this year.
United has previously announced plans to trim 950 pilots, about 600 flight attendants and 1,500 salaried workers.
Industry officials project that airline financial losses could top $10 billion this year without relief from fuel price increases, possibly leading to more bankruptcies.
Airlines have asked their customers to lobby Congress on legislation that would more tightly regulate speculative futures trading, which carriers as well as some lawmakers and energy experts blame for higher oil prices and recent price spikes.
Crude prices topped $145 a barrel on Friday.
James May, chief executive of the industry's top trade group, the Air Transport Association, led a group of travel industry executives on Friday in a formal plea to lawmakers to enact energy trading legislation before the August congressional recess.
May estimated that a $30 per barrel reduction in oil prices could be enough to stabilize an industry that is bleeding cash. But he said reestablishing lost jobs and services would require a steeper price decline.
(Reporting by John Crawley; Editing by Mark Porter and Gary Hill) 07/11/08 18:30 ET
