United Airlines Fuel Bill Nears $10 Billion
There was more grim new from the airlines industry. United Airlines says its 2008 fuel bill will hit $9.5 billion — more than $3.5 billion higher than last year.
United parent UAL Corp. also estimates passenger revenue for the second quarter will increase by 4 or 5 percent over a year ago. It said in an investor update that it will take significant second-quarter charges for cutbacks it announced this month as well.
United’s jet fuel prices are expected to average $3.31 per gallon, or $3.67 per gallon excluding hedges. The carrier estimates second-quarter fuel consumption at 573 million gallons.
Air Canada will cut 2,000 jobs — about 7 percent of its work force — and reduce flights this fall and winter. High fuel costs got the blame as well, north of the U.S. border.
