United to Rely More on Smaller Boeing Jets

UAL Corp.’s United Airlines, the world’s largest airline, said it will fly smaller planes to Asia next year as it tries to cut costs in the wake of the Asian economic crisis. The airline will fly Boeing 777s on some flights starting late next year, replacing the larger Boeing 747, which United now flies on all its Asian flights. The Boeing 777 costs less to fly than the 747, a United spokesman said. The Chicago-based company hasn’t yet decided on which routes it will fly the smaller planes or on what date the switch will take place. While most U.S. carriers have enjoyed profits in 1998, airlines with heavy exposure to Asia, such as United and Northwest Airlines Corp., have taken hits. Weak Asian travel demand next year is expected to drag down revenue at United and Northwest, the two largest U.S. carriers in Asia. United, which flies to 13 Asian destinations in nine countries, expects to see fourth-quarter profit drop to $1.64 a share from $1.74 a year ago, based on the average estimate of analysts surveyed by First Call Corp. UAL fell $2.06 to close at $57.31 on the NYSE.