UNITED EXPECTS NORMAL CARGO OPERATIONS DURING BANKRUPTCY PROCEEDINGS
United Airlines told shippers Monday morning it would maintain its cargo services while the carrier reorganizes under U.S. bankruptcy proceedings.
“Throughout the Chapter 11 proceeding, flights will continue, warehouse and airport operations will continue as usual, and existing customer contracts and agreements will be honored,” United Cargo said in a statement.
United executives blame the carrier’s need to file for bankruptcy on the post-Sept. 11, 2001, economic downturn in the airline industry.
However, the airline insists that its cargo division’s performance “remains solid.” In the third quarter, revenue was up 6 percent on a 3 percent increase in volume and a 3 percent yield. “Recently, the cargo division achieved a record-breaking day by shipping 8.1 million ton miles — the largest amount since Sept. 11, 2001,” the airline said.
United Cargo also took responsibility for 12 North American warehouses in an effort to improve its customer service to shippers.
“We do not plan any changes in the cargo operations at this time, but continually evaluate our service offering in an effort to meet the needs of customers worldwide as efficiently as possible,” said Roger Gibson, vice president of United Cargo.