American Airlines seeks $1bn cuts

AMERICAN Airlines is to cut a further 7,000 jobs. The world's biggest carrier also announced a radical streamlining of its fleet to cope with the fall in air travel since 11 September.

AA said it would reduce capacity by 9% and halve the number of aircraft types in its fleet to seven. Thirty five new aircraft-due for delivery this year will be deferred and efforts will be made to cancel other orders. The cutbacks will save $1.1bn (£743m) a year.

The job cuts will be completed by next March. No job losses are planned for Britain, according to AA, which employs 124,000 people worldwide.

'This latest round of initiatives is yet another step forward toward more solidly positioning American for success in the long term,' said chairman Donald Carty.