More fuel-price woes for United Airlines

1 comment November 7th, 2007

More bad news for United Airlines - a top exec said the airline might ground up to 100 of its planes and raise fares if fuel prices continue to climb. CFO Jake Brace said:

“Either the industry passes on the higher fuel prices or we’re going to have to lower capacity, but you have to make the equation work.”

On its face, a cut in capacity wouldn’t directly affect Rockford. Brace was talking about the 100 or so jets it owns without any debt. The Rockford-Denver flights are operated for United by SkyWest Airlines and don’t use United-owned planes. But it’s not a good sign for the industry in general that one of its big dogs is contemplating such actions. And no one likes paying more for airline tickets.