United Airlines said Friday it plans to cut nearly 3,000 jobs at its largest U.S. carrier, as it tries to balance its finances amid an unprecedented slump in airline fares.
The company said it will cut nearly 2,200 positions in the next year at American Airlines Group Inc., including roughly 600 full-time positions and 1,500 part-time jobs.
It said the cuts are primarily to eliminate a wide range of expenses, including capital expenditures and other expenses that could result in a reduction in revenue.
The layoffs come as the airline has been forced to cut more than $1 billion in revenue from its domestic and international airlines in the last six months.
It also said it is facing a backlog of more than 1,000 orders that are awaiting processing.
The cuts come as some airlines are facing steep financial losses amid the plunge in passenger and cargo volumes.
United said it plans an operating loss of $3 billion this year, down from a projected $3,000 per passenger last year.
The airline’s first-quarter profit was $2.05 billion, down slightly from $2,946 million.
The carrier also said its revenue in the first three months of 2017 was $7.2 billion, up $1.9 billion from a year earlier.
Its fourth-quarter earnings were $3 million lower than the $4.5 billion the airline projected.