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United Air's Parent Raises Cost-Cutting Goals

UAL, parent of No. 2 U.S. carrier United Airlines, is seeking ways to cut costs by hundreds of millions of dollars beyond the savings targets it has already announced, the company's chief financial officer said.

The company, which has pledged to trim costs by $400 million annually, intends to increase that goal in the 2008-2010 period, Jake Brace said at the JP Morgan Aviation & Transportation Conference.

He said UAL will see savings amounting to $265 million this year, on top of $135 million in savings in 2006. The savings relates to lower corporate overhead and advertising, Brace said.

The airline industry is in recovery mode after a prolonged slump that tipped several carriers, including United, into bankruptcy. UAL completed a three-year Chapter 11 reorganization last year.