United Airlines to axe 17% of mainline domestic flights

They’re the biggest capacity cuts yet, and they’re being executed by the nation’s second-largest airline. United Airlines (UA) says it is cutting 17 percent of its mainline domestic seat capacity by 2009. That means UA expects to retire all of its workhorse Boeing 737s – all 94 of them. UA also says it’s retiring six Boeing 747s. 747s are four-engine aircraft, the only four-engine aircraft type in United’s fleet. They’re used on international runs.

While domestic mainline seat capacity will be cut by between 17 and 18 percent during the 2008–2009 period, United says cumulative consolidated seat capacity will fall by 9 to 10 percent.

Fuel costs are driving the decision, one that is virtually unprecedented in terms of scope in the U.S. airline industry.

How is this going to affect where, and how often, United flies? United, which recently shelved merger talks with US Airways, said in a prepared release that any schedule changes “will be principally accommodated through modest reductions of underperforming markets and through [flight] frequency reductions”. UA indicates that it will not be closing any of its five U.S. hubs.

More news from United: Ted, the carrier’s low-fare, airline-within-an-airline, is out. UA will be refitting Ted’s 56 A320s with a combination of First and Coach-Class seats beginning in the spring of 2009 and incorporating the aircraft in its regular fleet.

The import of these decisions? John Tague, United’s Executive Vice President and Chief Operating Officer, concedes the moves: “dramatically reduce our capacity profile, particularly in the domestic marketplace.”

As United cuts aircraft, it’s cutting personnel too, by 1,400 to 1,600.

Cheapflights’ perspective: domestic airline seats could be be (barring new competition) harder to come by, especially to and from airports where United is entrenched. That means places such as Chicago O’Hare (ORD), Denver (DEN), Washington, DC Dulles (IAD), San Francisco (SFO), and Los Angeles (LAX).

Conversely, UAs’ dramatic drawdown could conceivably open up opportunities for discount airlines, such as Southwest, to move into markets where United is retrenching. Southwest has been expanding very rapidly of late at Denver International Airport. United’s announcement could conceivably accelerate the process and perhaps even lower fares on some routes.

© Cheapflights Ltd Jerry Chandler