CHICAGO, May 24 (Reuters) - United Airlines Chief Operating Officer Pete McDonald on Monday said employee furloughs could not be ruled out given the high price of jet fuel.
Speaking to reporters at an event to launch Ted, the airline's low-fare unit, from Chicago, McDonald said the current jet fuel crisis was a significant issue. In a court document on Friday, United parent UAL Corp. (UALAQ) said its fuel costs for 2004 would be about $750 million more than originally planned.
McDonald added that while the company was not actively studying the furlough possibility, "there's always that potential."
Fuel prices are at record highs, and United is currently unhedged after having filed for bankruptcy in December 2002. McDonald likened the fuel crisis to last year's outbreak of Severe Acute Respiratory Syndrome, or SARS, and the Iraq war.
"It's got the same effect on us," he said.
United will continue to look for ways to cut costs to offset its jet fuel expense, McDonald added.
Speaking to reporters at an event to launch Ted, the airline's low-fare unit, from Chicago, McDonald said the current jet fuel crisis was a significant issue. In a court document on Friday, United parent UAL Corp. (UALAQ) said its fuel costs for 2004 would be about $750 million more than originally planned.
McDonald added that while the company was not actively studying the furlough possibility, "there's always that potential."
Fuel prices are at record highs, and United is currently unhedged after having filed for bankruptcy in December 2002. McDonald likened the fuel crisis to last year's outbreak of Severe Acute Respiratory Syndrome, or SARS, and the Iraq war.
"It's got the same effect on us," he said.
United will continue to look for ways to cut costs to offset its jet fuel expense, McDonald added.