More cuts for United.

United Airlines is grounding 100 aircraft from its mainline fleet. It is cutting domestic capacity by around 18% and internationally by 5% by the end of 2009. It will lay off up to 1,600 staff this year as it struggles in the face of record high oil prices.

It plans to retire all of its 94 Boeing 737s and six 747s, ridding it of its less fuel efficient jets and lowering the company's average fleet age to 11.8 years. This will mean 'modest' cuts on underperforming routes through frequency reductions, while retaining a commitment to its five main US hubs. About 80 aircraft are expected to be out of the system by the end of 2008.

United is also eliminating its economy-only Ted service, reconfiguring that fleet's 56 Airbus A320s to include First class seats from spring 2009.