7,000 jobs to go at American Airlines

US airline, American Airlines, is to cut 7,000 jobs by the end of the year, which represents around 8% of its workforce. It is believed as many as 900 flight attendants, of its 18,000 cabin crew, could be affected.

The airline, which has a workforce of over 85,000 employees, is aiming to cut costs by reducing flights due to soaring fuel prices.

The level of job cuts appear to be twice as big as those announced so far by any other carrier.

A spokesperson for the airline said these are difficult but essential changes given the unprecedented challenges the industry faces.

The airline is close to forming a three-way operational merger with British Airways and Iberia.

A spokesperson for BA said it has been in talks with American Airlines for some time, but no decisions have been reached.

A merger would allow the companies to combine nearly all aspects of their operations, including sales, purchasing and marketing, resulting in lower costs and greater economies of scale.

Last week, US carrier United Airlines announced plans to shed around 950 of its 6,600 pilots, which represents about 14%.

The airline blamed record fuel costs and falling demand as weak consumer spending hit earnings.

The International Air Transport Association (IATA) recently warned the airline industry faced a grim outlook and passenger numbers would be affected by surging fuel costs and the deteriorating economic situation.

Michael O’Leary, chief executive of budget airline Ryanair, warned that most of Europe’s airlines will go bust if oil prices remain high.

US carriers including ATA Airlines, Aloha Airgroup and Skybus Airlines all ceased trading in March.

EOS and Maxjet revealed they would cease flying in May while Delta Air Lines, which is merging with Northwest Airlines, recently announced it would cut 2,000 jobs and reduce its capacity by 10% from 2008 levels year-on-year.

Story link: 7,000 jobs to go at American Airlines