Borescope said:"Since filing for Chapter 11 bankruptcy protection in December 2002, United has wrangled about $5 billion in annual cost cuts through wage and benefit reductions and a host of operational changes, including the creation last year of a new low-cost carrier called Ted.
The moves helped United - a unit of Chicago-based UAL Corp. - shift from a $2.8 billion loss in 2003 to a $1.6 billion loss last year.
Although that marks a significant financial improvement, the airline remains a long way from profitability."
If we look at these amounts of savings, it appears that they will need at least $5 Billion more in annual cost cuts through wage and benefit reductions and a host of operational changes to just break even. BOHICA
[post="261767"][/post]
Exactly. $5 billion in cuts yet the loss shrunk by a piddly $800 million? Added fuel expense didn't account for the other $4.2 billion, so where did it go?
Oh, yeah, revenue has plunged over the same timeframe as well. B)