United Airlines says it will cut more jobs and ground more planes, blaming an extra $3-billion dollars it expects to spend on jet fuel this year. The Chicago-based company also plans to eliminate its discount airline.
PHONE: Thanks for calling Ted, part of United.
United hyped Ted as sort of a hipper, cheaper, more...orange version of itself.
PHONE: To make your travel plans with Ted, please press 2.
Analysts doubted it could be profitable. And after less than five years in the sky, Ted’s been dumped in a cost-cutting move. Joseph Schwieterman is a transportation expert at DePaul University.
SCHWIETERMAN: The elimination of Ted is more, you might say, a bit of company embarrassment than anything else.
A spokesperson says Ted’s employees, many of whom also work on United flights, won’t automatically lose their jobs - although they could be subject to company-wide cuts.
Ted’s 56 planes will be absorbed into United’s fleet by the end of next year.