CHICAGO (Reuters) - UAL Corp (UAUA.O: Quote, Profile, Research), parent of United Airlines, will shrink its fleet by up to 4 percent this year to combat the skyrocketing cost of jet fuel, the chief executive of the No. 2 U.S. carrier said on Tuesday.
In a message to employees, Glenn Tilton said the airline aims to eliminate 15 to 20 of its older, less fuel efficient narrow-body planes. United's fleet currently has 460 aircraft.
The fleet reduction is part of a broader effort to offset a possible $1 billion increase in fuel costs in 2008, UAL's Chief Financial Officer Jake Brace said in a statement earlier on Tuesday.
The airline currently has 20 percent of its anticipated 2008 fuel requirements hedged, Brace said. That's up from 16 percent as reported in previous regulatory filings.
In a message to employees, Glenn Tilton said the airline aims to eliminate 15 to 20 of its older, less fuel efficient narrow-body planes. United's fleet currently has 460 aircraft.
The fleet reduction is part of a broader effort to offset a possible $1 billion increase in fuel costs in 2008, UAL's Chief Financial Officer Jake Brace said in a statement earlier on Tuesday.
The airline currently has 20 percent of its anticipated 2008 fuel requirements hedged, Brace said. That's up from 16 percent as reported in previous regulatory filings.
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