DALLAS (AP) — Fall and winter service reductions at American Airlines could cost some workers their jobs.
American announced late Monday that it will reduce capacity in the current quarter by about 3 percent. It cited the weak economy, high fuel costs, and more pilots retiring.
Analysts said the move, along with similar recent announcements from United and Delta, showed that airlines were serious about controlling costs. Shares of American parent AMR Corp. led a rally in airline stocks on Tuesday. AMR rose 20 cents, or 7.7 percent, to $2.73 in afternoon trading.
"These capacity adjustments could have a significant impact on operations and, unfortunately, could result in employee reductions companywide," said spokesman Tim Smith.
Smith said American was studying whether it could limit the number of furloughs by offering voluntary severance.