United Continental Reducing Capacity Due to Rising Fuel Prices

File photo by Wendy Osher.

By Sonia Isotov

United Continental Holdings, Inc. announced yesterday plans to reduce capacity and take other cost savings measures due to the rise in fuel costs, possibly affecting Maui and other Hawaii and Guam routes and seats.

Due to the recent increase in fuel prices, the United Continental, the United Continental Holdings, Inc., the holding company for both United Airlines and Continental Airlines, said yesterday, in a written statement, that the company plans to reduce capacity from its previous 2011 projections by approximately 1 percent effective with its May schedule and 4 percent effective with its September schedule.

Flight frequencies will be reduced, which will indefinitely postpone the start of flights to certain markets and exiting less profitable routes.

The company statement also mentioned that with these reductions, an analysis is being performed that could decrease domestic capacity as much as 5 percent, but increase international capacity as much as 2 percent, in the fourth quarter.

Along with capacity reduction, the company the company is also analyzing the removal of certain less fuel-efficient aircraft from its fleet and will be taking other cost saving measures.