United Airlines

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Question 1. The financial health of United Airlines Based in United States, United Airlines is among the biggest airlines in the country with over 48,000 employees. The company has continued to offer good services to customers therefore it is expanding day by day. However, according to Chicago Business (2011), the company’s revenue growth is slowing every year which is an indication that the company is likely to incur some losses in the years to come. The company increased the fare during the second quarter of the year 2011 by 9.9% due to the 11.5% increase in revenue. The company’s shares have also decreased by 10% therefore trading at $22.65. This is a clear indication that the company’s financial health is declining. In 2008, the United Airlines decided to lay off 950 pilots from their positions in an effort to maximize profits. This comes as a result of the slow growing economy and the increasing jet fuel prices. At the same time the management also announced a reduction in the number of flights and also grounded about 100 jets. In the process 1,600 people lost their jobs (Fre...

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