UAL Corp, the parent of United Airlines, plans to slash at least 1,000 jobs by the end of this year as part of its overall goal to reduce costs by $400 million, its chief executive said on Wednesday.
United plans to eliminate salaried and management positions -- out of some 9,400 -- as part of its plan to reduce $100 million in general and administrative expenses, Chief Executive Glenn Tilton said at the Merrill Lynch Global Transportation conference.
"As we near the end of our second quarter, our cost performance is somewhat better than the guidance we provided," Tilton said. "We are going to reduce our costs further."
UAL, which spent more than three years in bankruptcy, slashed its costs by $7 billion annually during the process. But the airline said it was cutting its costs by an additional $400 million starting in 2007.
Other components of the $400 million cut include reducing purchased services costs by $200 million, slashing marketing costs by $60 million and saving $40 million from increased operational efficiencies.