UAL Postpones New China Flight Due To Fuel Cost
 

United Postpones Launch of Guangzhou Service

Posted April 11, 2008
United applied on Friday to the U.S. Department of Transportation to postpone the start of service between San Francisco and Guangzhou for one year.

In 2007, United paid on average $72 for a barrel of oil. With prices around an average of $100 a barrel, United faces a cost increase of more than $2 billion. Given the softening U.S. economy, United and other carriers, including Delta, American, Northwest and US Airways, have announced capacity cuts in response.

United will be contacting customers in the upcoming weeks to offer alternative travel arrangements.

China is United's fastest-growing market in the Asia Pacific region and is of strategic importance to United. We do not anticipate any other change to our China schedule, and we have applied to the DOT to begin San Francisco-Guangzhou service next year by June 30, 2009.