United will move out its 38-month stay under bankruptcy protection, reports the New York Times. Of course, the company’s employees who have taken the bulk of the pain, remain wary about management’s plans to streamline the carrier.

United has cut employment by roughly a quarter. It expects by 2010 to have its annual costs $7 billion below pre-bankruptcy levels. And it was able to wipe out $13 billion of debt and pension obligations, reports the paper.

The talk about a big recovery in the industry is already being tempered by the recent spike in oil prices. Fuel costs will certainly exceed the company’s original projections, which were based on $50 a barrel oil. It’s been trading over $60 for a couple of weeks.

And despite promising more efficiencies and cost cutting, the big threat for United and other big carriers still seems to be the bargain airlines.