Source: Reuters Author: Kyle Peterson 06/11/2009
Subject Concerned: Government Aircraft Airlines Aviation Fuel
United Airlines parent UAL Corp said on June 11 that it was willing to adjust capacity and called on government to take action to reduce speculation in oil.
"We are certainly willing to adjust our capacity," UAL Chief Executive Glenn Tilton told reporters after the company's annual meeting.
Tilton's comments came after Delta Air Lines, the world's biggest carrier, said it planned more capacity cuts this year in wake of soft travel demand and rising fuel prices.
During the meeting, Tilton said government must take action to "dampen the speculative nature" of current high oil prices.
Tilton also said his company has "items and service we can charge for that we have not". As the weak economy impacts travel demand, airlines have raised additional revenue by charging new fees for food and checked baggage.
Last week, United Airlines said it asked the two biggest planemakers to bid on an order that would replace its widebody fleet.
UAL will move forward with fleet renewal "only when we are confident that we will generate a return on our investment," John Tague, the company's chief operating officer, said during the meeting.
He also said the company may have to consider changes to its economy cabin to accommodate business travelers who have downgraded to less expensive service.