United Airlines Reports Huge Loss

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    NEWSLETTERS

    AFP/Getty Images
    United Airlines announced this morning that it will layoff 414 mechanics at San Francisco airport.

    United Airlines announced a 4th Quarter loss of $1.3 billion Wednesday and reports suggest the company may cut 1,000 jobs. 

    In a news release the company said, "Fuel prices drove the company's losses in 2008." 

    United Airlines isn't alone in the financial crunch.  On Wednesday, Fort Worth-based AMR Corp., parent to American Airlines, said they lost $340 million in 4Q and $2.1 billion in 2008.

    Market Watch.com reported that United plans to cut salaried and management positions, as the company tries to improve its financial position.

    The airline industry has faced a two front battle in recent months, trying to recover from the high fuel prices of early 2008, followed by a decline in passenger demand that began as fuel prices eased but the global economy soured.