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United Continental to Cut 600 Jobs, Shares Fall

It beat Wall Street forecasts despite a wider quarterly loss


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.

Airlines Ground Entire Fleet of Boeing 787s
Airlines Ground Entire Fleet of Boeing 787s

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.

Article printed from InvestorPlace Media,

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