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United Continental cut backs capacity as fuel rises

The United/Continental airlines’ grouping is to cut capacity in response to rising fuel prices.


United Continental Holdings is to make a 1% cut in May followed by a 4% reduction in September.


Flight frequencies will be reduced, the start of new flights will be “indefinitely” postponed and less profitable routes will be dropped. “Concurrent with the capacity reductions, the company is also analysing the removal of certain less fuel-efficient aircraft from its fleet and will be taking other cost saving measures,” the group said.


Fourth quarter consolidated US domestic capacity is expected to drop by 5% and international capacity by 2% compared to the same period last year.


The measures are being taken on the back of a 1.1% drop in traffic across the two partner carriers in February over the equivalent month last year. The Star Alliance carriers currently operate around 5,675 flights a day to 372 airports on six continents.


 

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