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

FILE (AP Photo/Stephan Savoia, File)

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.

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