by Christopher Freeburn | January 25, 2013 9:33 am
More pink slips will be going out at United Continental (NYSE:UAL).
On Thursday, United said that it would trim its payroll by more than 600 workers. The cuts will come from the company’s management ranks, and come on the heels of a 7% reduction in company officers announced last month, Reuters noted.
Investors were not happy with the news. United shares fell about 4% in Friday morning trading.
United also announced that it lost $620 million during the fourth quarter, worse than than the $138 million it lost in the same period in 2011. The airline took quarterly charges of $430 million resulting from pension payments and other costs. Adjusted EPS showed a loss of 58 cents, which beat Wall Street, which was looking for a loss of 61 cents a share.
While passenger revenue per available seat ticked ip 0.6% during the fourth quarter, overall revenue dipped to $8.7 billion, down 2.5% from the prior year.
The airline has experienced a number of problems resulting from its effort to integrate the operations of United and Continental Airlines after their 2010 merger.
Source URL: http://investorplace.com/2013/01/united-continental-to-cut-600-jobs-shares-fall/
Short URL: http://invstplc.com/1nQXGXS
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.