United Trims Fleet to Save Money

United Airlines expects to reduce its fleet size by 15 to 20 aircraft by year’s end, a measure of combating record-high fuel prices.

Jack Brace, United’s executive vice president and chief financial officer, said the aircraft targeted for removal are older, less fuel-efficient, narrow-body aircraft. Brace spoke at the JP Morgan Aviation and Transportation Conference in New York yesterday.

Also, Brace said that United has increased its fuel hedges since January, and now has 20 percent of its fuel hedged for 2008.

The airline said it was looking to further reduce other costs and is reviewing non-aircraft capital spending, having already delayed the purchase of new aircraft “until the industry recovers to a level where those assets can earn a reasonable return.”

“We are taking a prudent step now by reducing our fleet, taking assets out of the network that don’t make sense at these fuel prices, to better position United to be successful in an ever-challenging environment,” Mr. Brace said.