American announces cuts in capacity, employment:

06/12/2009 | Google · Reuters · Fort Worth Star-Telegram (Texas)

With summer bookings trending down, American Airlines says it will trim its flight schedule and lay off some 1,600 employees, or about 2% of its workforce. CEO Gerard Arpey said advance bookings through August are down about 2% compared to last year, adding: "That's terribly alarming to me." For the full year, American now plans to reduce capacity by 7.5%, up from April's goal of a 6.5% cut. Separately, the airline said it would buy eight additional 737s from Boeing Co., for a total of 31 expected deliveries this year.

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Google · Reuters · Fort Worth Star-Telegram (Texas)

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