United Airlines plans to cut debt

ELK GROVE VILLAGE, Ill., Nov. 1 (UPI) -- United Airlines, the Chicago airline that recently emerged from bankruptcy, aims to slash its debt by early next year.

That's the soonest United can do so without incurring penalties from the lenders who provided the No. 2 U.S. carrier with $3 billion, the Chicago Tribune said Wednesday.

Right now United owes creditors about $10.5 billion, but with two consecutive quarters in the black, corporate leaders are talking about strengthening the balance sheet. United reported net income of $190 million in the third quarter ending Sept. 30.

"Our first priority is debt," said Jake Brace, United's executive vice president and chief financial officer, said Tuesday.

Eliminating debt would also enhance merger prospects, something that "strategically would be a benefit to the industry," said Chief Executive Glenn Tilton.