Soaring Fuel Prices Prompts American Airlines To Curtail U.S. Flights

New York, NY (AHN) - AMR, the parent company of American Airlines said Wednesday it will cut domestic flights by up to 12 percent, ground 75 jets and introduced another baggage fee to counter record fuel expenses.

AMR CEO Gerard Arpey said the airline will trim U.S. capacity by between 11 percent and 12 percent by the fourth quarter. In April, the company had said it predicted domestic capacity would fall 4.6 percent compared to the same period in 2007.

As a result of the lower number of flights, job cuts and location closures might follow, Arpey said.

In addition, the airline will reduce its fleet of aircraft by 40 to 45 planes.

The airline also introduced a $15 fee for the first checked back on U.S. flags. The move differs from recent fees tacked onto the second checked bag.