United Airlines cuts more 2012 flying
NEW YORK (AP) — United Airlines will reduce flying more than expected during the rest of this year because of higher fuel prices and a sluggish economy.
United will cut flying capacity by 2 to 3 percent from September through the rest of the year, Chief Financial Officer John Rainey said at an investors' conference in New York on Wednesday.
United previously expected to cut flying by 1 to 2 percent during the fourth quarter.
"We are beginning to see some modest slowness in the economic outlook and we're responding accordingly," he said.
For all of 2012, the airline now expects that flying capacity will fall 0.75 percent to 1.75 percent.
For an airline, capacity is the number of seats times the number of miles flown. So airlines can cut capacity by parking planes, using smaller planes or flying shorter distances.
Most of the big U.S. airlines have been keeping capacity flat or down as they cope with high fuel prices and a tepid economy.
United Continental Holdings Inc., based in Chicago, was formed in 2010 after the merger of United and Continental. Its shares rose 89 cents, or 4.9 percent, to $18.99 in afternoon trading.