United Airlines, the world’s second-largest carrier, said Tuesday that it will begin hiring and training new pilots for the first time since 2001, a move aimed at accommodating an increased number of international flights.
United, the largest carrier at Denver International Airport, could add as many as 100 pilots by the end of the year. The exact number will depend on whether Congress changes the mandatory pilot retirement age and on the outcome of United’s recall of furloughed pilots.
“This milestone is a positive development for our company and our customers, enabling us to expand the ranks of our professional pilots and maintain the efficiency and the breadth of our schedule and our network,” Glenn Tilton, the chief executive of parent company UAL Corp., said in a message to employees.
United expects to begin accepting online applications this summer, but company officials were unable to give a specific date.
All new hires will be trained in United’s training facility in Denver, according to spokeswoman Megan McCarthy. She declined to say from which cities United would recruit or where the new pilots would be based.
Officials also declined to specify how much the new hires will earn, but McCarthy said they will be offered a “competitive salary” based on the collective- bargaining agreement.
A debate in Congress has complicated the potential number of hires. Lawmakers may vote to raise the mandatory retirement age for pilots from 60 to 65. If the age is raised, fewer hires would be necessary because current employees would work more years, McCarthy said.
Recalls of furloughed pilots – pilots temporarily laid off due to the company’s financial situation – have been ongoing since 2004.
There were 2,172 furloughed pilots at the highest point, said Dave Kelly, a spokesman for Air Line Pilots Association, which represents United pilots.
As of this month, fewer than 200 pilots remain on furlough, McCarthy said.
“It’s been six long years – we’re happy that all of our furloughees have had the opportunity to come back,” Kelly said.
He called the announcement a necessary step for addressing the company’s “staffing issues,” saying the union would welcome twice as many new pilots as the 100 proposed.
All furloughed pilots will have been offered recalls by the end of the month, Sean Donohue, United senior vice president, said in a statement to employees.
The recalled pilots are expected to be back on the job by September, he said.
Shares of UAL soared to their highest point in seven months Tuesday, gaining $2.60, or 7 percent, to close at $37.93.
The boost in share price was largely driven by analysts – at least three of whom Tuesday raised their profit estimates for the company.
In a note to investors, Lehman Brothers analyst Gary Chase cited the airline’s recent guidance, which it said is beating revenue and cost expectations.
Chase described the company’s shares as “appealing, given (their) current valuation.”
Staff writer A.J. Miranda can be reached at 303-954-1381 or amiranda@denverpost.com.
