Company will also slash 1,100 jobs

Faced with a first quarter pre-tax loss of $542 million, United Airlines is taking even more drastic measures than previously announced for the rest of 2008, the company said. Skyrocketing fuel costs – up 50 percent since last year’s first quarter – are among the changes in the industry that will require United “to fundamentally overhaul every fact of our business,” said CEO Glenn Tilton. “Consolidation is only one of many changes needed, together with capacity discipline, new revenue streams and elimination of assets that do not earn a sufficient return.” Consequently, Tilton said United’sUnited’s mainline domestic capacity will shrink by nine percent this year – on top of a five percent reduction in the fourth quarter of 2007. The airline will ground 30 narrow-body jets that are “some of the oldest and least fuel-efficient in the company’s fleet,” United said. The company also said it will eliminate 1,100 jobs this year. As for increasing revenues, United said it will continue to create new revenue streams “through unbundling products, offering new a la carte services and expanding choices for our customers.” For example, United is among those airlines charging $25 for a second checked bag; and last week, United announced that it is boosting its ticket-change fee from $100 to $150. “The company’s existing merchandising programs, such as Economy Plus and Premium Cabin Upsell, have been extremely successful,” United said.