American to cut management jobs

DALLAS — American Airlines officials have told employees the carrier expects to cut about 8 percent of management and support jobs at the nation's biggest airline as it copes with record high jet fuel prices.

The cuts will apply to "all levels of management" and probably be based on how critical the person's job is, Faye Wright, the managing director of flight services, told employees in an e-mail.

The airline has not disclosed the number of pilots, flight attendants and mechanics who will lose their jobs.

American has about 82,000 employees, although it wasn't immediately clear how many are considered to hold management or support jobs.

Executives announced last month that American would cut capacity in the October-to-December quarter by 11 percent to 12 percent compared with late 2007. Sister carrier American Eagle would also reduce capacity.

Gerard Arpey, the chairman and chief executive of American and parent AMR Corp., said at the time that the reductions would probably lead to thousands of jobs being eliminated, but the Fort Worth-based airline hasn't put out specific numbers.

The airline has said it would try to use voluntary measures such as severance agreements, to reduce the need for layoffs.

Continental Airlines Inc. recently offered voluntary-departure packages to employees with at least 10 years of service. Continental didn't offer cash, but instead promised one year of company-paid health insurance and free travel for employees and their families until 2023.

Continental's pilots struck a separate deal allowing for voluntary leaves of absence that would allow pilots to keep getting benefits while they would no longer be flying.

Airlines are struggling to handle fuel prices that have nearly doubled in the past year. AMR expects to spend more than $10 billion on jet fuel this year, up sharply from $6.7 billion last year.

American announced Wednesday that it will eliminate some flights at many airports, including hubs at Dallas-Fort Worth International Airport and Chicago's O'Hare Airport. American plans to quit operations in three cities, and American Eagle plans to pull out of five cities in September.