Credit Herald

American Airlines says it could cut 900 flight attendant jobs as it reduces flights to cope with record-high fuel costs.

The Fort Worth, Tex.-based airline expects to reduce jobs for pilots and mechanics too, but it hasn’t released numbers yet.

American, the nation’s largest carrier, said Wednesday that job cuts were necessary "to overcome near-term challenges and secure our company’s long-term future."

In May, American announced it would cut domestic capacity by 11% to 12% later this year, retire some planes and cut an unspecified number of jobs.

Federal law requires employers to give 60 days’ notice of major layoffs, and officials of the flight attendants’ union said they received a notice Wednesday of job reductions that could start Aug. 31.

Airlines and union officials said they would try to reduce layoffs through attrition, or by employees voluntarily taking leaves of absence or sharing jobs.

American has about 18,000 active flight attendants, so 900 jobs represents 5% of the ranks.

"We’ve all been sitting on the edge of our seats waiting for a number," said Frank Bastien, a spokesman for the Association of Professional Flight Attendants. "Most of us were pretty pleased it wasn’t higher."

Flight attendants had feared more job losses after the company said last week it would reduce management and support-staff jobs by 8%. American has about 82,000 employees.

American said it reached an agreement with the union to offer voluntary measures such as leaves of absence to U.S.-based flight attendants aged 50 and older with at least 15 years of service. The airline said it struck a similar deal with the Transport Workers Union, which represents mechanics and bag handlers.

"These are difficult, but necessary changes given the unprecedented challenges we face with overcapacity in the industry, skyrocketing fuel prices, and a worsening U.S online cash advance. economy," said American spokesman Tim Wagner.

American and sister airline American Eagle expect to spend more than $10 billion on jet fuel this year, up from $6.7 billion last year.

American is the latest airline to put a number on possible job cuts and reduced flying, due to rising fuel costs and widening losses.

Continental Airlines Inc. (CAL, Fortune 500), which is cutting 3,000 jobs and grounding 67 jets, has offered voluntary-departure packages - but no cash - to employees with at least 10 years of experience.

UAL Corp.’s (UAUA, Fortune 500) United Airlines, the nation’s second-largest carrier, plans to eliminate 950 pilot jobs and 1,600 salaried positions. Delta Air Lines Inc. (DAL, Fortune 500) is shedding 4,000 jobs; spokeswoman Betsy Talton said more than that number took incentives to leave, avoiding layoffs. US Airways Group Inc. (LCC, Fortune 500) is cutting 1,700 jobs.

Airlines are also raising fares and imposing new and higher fees for checking luggage, hauling a pet or sitting in a choice aisle seat.

Still, the industry’s trade group, the Air Transport Association, predicts that U.S. airlines could lose $13 billion this year.

Shares of American Airlines parent AMR Corp. (AMR, Fortune 500) fell 23 cents, or 4.7%, to $4.62, as oil prices rose past $144 per barrel. The shares are trading at their lowest mark since early 2003, when the company was threatening to file for bankruptcy. 

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