AA to Cut 1,600 Jobs, Capacity

By Frank Heinz
|  Thursday, Jun 11, 2009  |  Updated 4:49 PM CDT
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AA to Cut 1,600 Jobs, Capacity

American Airlines

Capacity cuts are expected to begin in August with job cuts to follow in October.

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Fort Worth-based American Airlines said Thursday they will be cutting capacity in August and 1,600 positions beginning on Oct. 1.

Many of the job cuts are expected to be in Kansas City and St. Louis airport services, flight services and cargo. Minimal cuts are expected in Dallas-Fort Worth.

"These reductions come as a result of our efforts to "right size" our operation and respond to the weaker demand for travel by reducing our schedule, including seasonal changes, and addressing lower-than-expected attrition," said Jeff Brundage, SVP of Human Resources for American Airlines. "At this time, we estimate reductions in the range of 40 positions at MCIE, 300 in Airport Services, 50 in Cargo and up to 1,200 in Flight Service."

No DFW-based flight attendants are expected to lose their jobs, though some gate and ticket agents may be affected.

CEO Gerard Arpey said that American will also cut capacity about 7.5 percent, about 2 percentage points more in the second half of the year than previously announced.

Arpey says advance bookings through August are down about 2 percentage points from last year, which he calls "terribly alarming."

Arpey blames the travel slump on the weak global economy and the swine flu outbreak.

American joined Delta, the world's largest airline operator, in announcing deeper capacity cuts than previously planned.

The airline has also cut 29 flights from its winter schedule in St. Louis, but winter flights out of DFW will increase by 18.

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