United / Continental make capacity cuts

8 Mar 2011 by BusinessTraveller

United Continental Holdings says that recent fuel price increases means the company will make consolidated capacity cuts including “indefinitely postponing the start of flights to certain markets and exiting less profitable routes”.

The announcement was made in the company’s February 2011 Operational Performance report for both United and Continental, although at this stage it is not clear which routes may be postponed or cut.

United Continental Holdings says that it now expects its full-year 2011  to be “roughly flat year-over-year, down from its prior guidance of up one to two per cent”, although international capacity is expected to be up 2.5 to 3.5 per cent, with domestic capacity down 1.5 to 2.5 per cent.

The company says it is also analyzing the removal of certain less fuel-efficient aircraft from its fleet, and added that it will be taking other cost saving measures.

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