The company’s American Airlines unit will cut capacity in the October-December quarter by 3 percent, compared with late 2010. It cited the weak economy, high fuel costs, pilot retirements, and the phasing out of up to 11 Boeing 757s. Analysts said the move shows the airline is serious about controlling costs, though Barclays Capital still expects AMR to lose money through next year. It was the only major US airline to lose money last year. Investors were encouraged, but employees had new job worries. A spokesman said American is studying whether it can limit the number of furloughs by offering voluntary severance.
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