Rising fuel prices have impacted airline travel. Be prepared, and adjust your plans accordingly.
Continental Airlines plans to slash 3,000 jobs and reduce domestic flights in an effort to reduce operating costs. The cuts include pilots, flight attendants, mechanics, administrative personnel, and management.
"These actions will help Continental survive the crisis," wrote Chairman and Chief Executive Larry Kellner, and President Jeff Smisek, in a letter to Continental's 45,000 employees. In a move to demonstrate a personal response and commitment, the executives also announced that they would forgo incentive pay for the rest of 2008.
It has been estimated that charges for fuel will be $ 2.3 billion higher in 2008 than in the previous year. Beginning in September, Continental will decrease capacity by 11%, and will remove 67 airplanes from the fleet by the end of 2009.
United Airlines announced 14% reduction of capacity planned for fourth quarter of 2008. … Read More