CHICAGO -- High fuel costs and a fierce fare war continue to add to red ink at United Airlines, but the company's chief executive said Thursday the carrier could get a boost from a recent fare increase.

United lost $291 million in February after fuel costs soared $57 million over the same period a year earlier. About $92 million in losses came from reorganization expenses as the company tries to emerge from 27 months in Chapter 11 bankruptcy.

United CEO Glenn Tilton said the airline industry continues to suffer from low fares stemming from oversupply in the market. United plans to make further cuts to its domestic flight schedule, including a possible reduction in its regional United Express fleet, officials said Thursday.

"Moderating capacity growth is necessary to realize higher fares," Tilton said Thursday in a phone message to employees.

Tilton added that a $10 round-trip fare increase on domestic flights implemented this week "may well stick." United and several other carriers matched the increase that Continental Airlines Inc., put in place last week.

United said its main domestic fleet will have 455 planes by the end of the third quarter, down 69 aircraft, or 13 percent, from mid-2004.

United has expanded it international routes, however, and announced Thursday it would begin service from San Francisco International Airport to the new Central Japan International Airport near Nagoya, Japan, starting this weekend.

United, a unit of Elk Grove Village-based UAL Corp., on Thursday also reiterated its plan to terminate its traditional pensions and replace them with defined-contribution plans in hopes of saving $4.1 billion over five years. It faces a May 11 bankruptcy court trial if it can't agree with its unions on the pension issue.

"Our goal remains to reach agreement with our unions on this issue and avoid a costly, time-consuming trial," United Chief Financial Officer Jake Brace said Thursday.