BBC News Online: Business

United Airlines boss quits

United Airlines is expected to lose $1bn this year

Two of the airline's trade unions have campaigned for James Goodwin's departure, angered that the bankruptcy warning came just ahead of negotiations over a new contract for 45,000 staff.

Mr Goodwin said he was resigning - after 34 years with the firm - because "it is the right time for a new leader to guide the company through the challenges that lie ahead".

The board of the airline's parent company, UAL, said it had elected John Creighton to replace Mr Goodwin as its chairman and chief executive by an unanimous vote.

Shares tumble

"Our immediate goal is to restore United's financial stability," said Mr Creighton.

"We intend to work hand-in-hand with our employees and unions to accomplish this task by developing innovative solutions to the issues we collectively face".

Shares in UAL plummeted to a 14-year low of $13.93 as Wall Street closed for the weekend on Friday 26 October.

Haemorrhaging money

UAL is expected to report operating losses of up to $600m for the three months from July to September on 1 November.

In his controversial letter, Mr Goodwin acknowledged that the airline's costs were already exceeding revenues before the 11 September attacks.

"Today, the situation is exacerbated with costs exceeding revenues at four times the pre-September 11 rate," he warned.

"Today, we are literally haemorrhaging money. Clearly this bleeding has to be stopped - and soon - or United will perish sometime next year."