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Rising fuel costs present challenge for United to emerge from bankruptcy.
Byline: Kelly Yamanouchi
Sep. 9--Now that United Airlines has filed a reorganization plan to exit bankruptcy, it faces a formidable challenge: becoming profitable while paying skyrocketing jet-fuel prices.
That could mean United will try to raise airfares.
United's financial projections assume an oil price of $50 per barrel through 2010. Oil is currently trading in the mid-$60-per-barrel range.
"If long-term oil prices are significantly higher than are contemplated today, they will drive industry fare increases or structural changes, such as capacity reductions," United said in its financial projection filing made Wednesday.
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