American Airlines wants to cut 20% of labor costs, possibly 15,000 jobs

American Airlines wants to cut labor costs by 20 percent, a move likely to include the loss of thousands of jobs at the nation

FILE (AP Photo/Stephan Savoia, File)

DALLAS (AP) -- American Airlines wants to cut labor costs by 20 percent, a move likely to include the loss of thousands of jobs at the nation's third-biggest airline.

American is expected to say later Wednesday how many jobs it wants to eliminate, but a 20 percent cut in labor costs at American and sister airline American Eagle could mean 15,000 jobs or more.

American CEO Thomas Horton said Tuesday that the company wants to slash spending by $2 billion per year and raise revenue by $1 billion per year as part of a plan to return to profitability.

A bankruptcy judge will decide whether American can carry out the cuts, which will be opposed by its three major unions. The airline filed for Chapter 11 protection in November.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to webmaster@wvlt-tv.com. Please provide detailed information.

powered by Disqus

WVLT VOLUNTEER TV

6450 Papermill Drive Knoxville, TN 37919 Phone - (865) 450-8888; Fax - (865) 450-8869
Gray Television, Inc. - Copyright © 2014 WVLT-TV Inc. - Designed by Gray Digital Media - Powered by Clickability 138501629 - local8now.com/a?a=138501629