United Continental to Cut 600 Jobs, Shares Fall

by Christopher Freeburn | January 25, 2013 9:33 am

United Continental nose plane 630 flickr 300x207 United Continental to Cut 600 Jobs, Shares Fall[1]More pink slips will be going out[2] at United Continental (NYSE:UAL[3]).

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[4] after their 2010 merger.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/07/United_Continental_nose_plane_630_flickr.jpg
  2. pink slips will be going out: http://www.reuters.com/article/2013/01/24/us-unitedcontinental-results-idUSBRE90N0YA20130124
  3. UAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=UAL
  4. effort to integrate the operations of United and Continental Airlines: http://investorplace.com/2012/11/united-continental-struggles-to-ride-out-post-merger-turbulence/

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