High Fuel Prices May Cut Airline Flights

A United Airlines executive says the carrier could ground as many as 100 or more of its airplanes if soaring fuel prices ultimately cause consumers to buy fewer tickets.

Chief Financial Officer Jake Brace says there hasn't been any evidence yet of a falloff in demand.

That's even as crude oil prices approach 100 dollars a barrel.

But he says Chicago-based United will eventually have to deal with skyrocketing prices by either raising fares further or reducing capacity rather than flying with too many empty seats.

Brace told a Goldman Sachs conference in New York today that United has a little over 100 aircraft unencumbered by debt that it could ground whenever it needs if demand weakens.

He said the carrier is getting ready to react to higher fuel prices.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
23 WIFR 2523 North Meridian Road Rockford, IL. 61101 Business: 815-987-5300 Fax: 815-965-0981 News: 815-987-5330 Fax: 815-987-5333
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 11091026 - wifr.com/a?a=11091026