July 17 United Airlines said on Thursday it
plans to take charges of $169 million in the second quarter tied
to the grounding of regional aircraft, headcount reductions and
United Continental Holdings Inc, formed in the 2010
merger of UAL Corp and Continental Airlines, said it recorded
costs of $66 million to take 21 Embraer ERJ 135
planes out of service. The company said the effect of pilot
shortages, new Embraer 175 regional jet deliveries and fuel
prices led it to ground the planes.
The airline said it still operates nine Embraer ERJ 135
planes and will consider grounding those once purchase
agreements tied to them end in the fourth quarter.
United, which is closing its hub at Cleveland airport and
taking other cost-cutting steps, also said it had $38 million of
costs to reduce its workforce. Other charges are tied to merger
integration and asset impairment.
Shares of United were up 0.3 percent to $45.05.
(Reporting by Karen Jacobs in Atlanta; Editing by James