United scraps expansion plans because of oil

AP News
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Posted: Mar 07, 2011 6:49 PM
United scraps expansion plans because of oil

United Continental Holdings Inc. is scrapping plans to add flights this year, and says it will drop unprofitable routes because of rising fuel prices.

The announcement from the world's largest airline company on Monday is the latest example of airlines shifting plans because of the run-up in oil prices. Southwest Airlines matched an industry-wide fare hike, and the smaller Frontier Airlines said it would reduce growth plans.

United Continental now plans to do about the same amount of flying this year as it did last year. Domestic flying is expected to fall as much as 2.5 percent, with international flying up as much as 3.5 percent.

United said it will remove less fuel-efficient planes from its fleet. It didn't say which ones. It also said it plans other cost cuts.