As during 2008 oil spike, United plans deepest reductions
By Julie Johnsson, Tribune Reporter
8:06 PM CST, March 10, 2011
As airlines push airfares higher to counteract surging oil prices, they also are dusting off the flight plans they crafted to navigate 2008's fuel spike, when crude peaked at $147 per barrel.
United, Delta and American airlines are raising fuel surcharges on overseas flights to levels not seen since 2008 and are laying plans to ground fuel-guzzling aircraft and prune seat capacity, with the deepest cuts coming after the peak summer travel season.
Carriers realize they can't hike fees and fares indefinitely without alienating consumers. So they're looking at ways to curb fuel costs and trim unprofitable flights as oil hits the stratosphere. As in 2008, Chicago-based United is charting the deepest cuts among its peers.
While United intends to hold capacity flat for 2011, the world's largest carrier is planning to reduce its domestic flying by 5 percent during the fourth quarter, United told employees this week. Regional subcontractors will bear half of those cuts.