American Airlines To Furlough 200 Pilots As Part Of Jet Fuel Crisis

July 16, 2008 12:07 p.m. EST

Fort Worth, Texas (AHN) -- American Airlines, the largest airliner in the U.S., says it is going to lay off 200 pilots through furloughs, effective October, as it struggles to keep its wings in the air with the fuel crisis showing no signs of getting better. American said it expects to pay $10 billion in fuel by year's end, a major hike from $6.7 billion for last year's totals. Spokesman Tim Wagner said the plan proposed to the Allied Pilots Association includes early retirement incentives for senior pilots, opening slots for junior pilots.

Wagner said he hoped such a concession could lower the number of pilots let go. The furloughs would essentially put pilots on a rehire list should conditions get better for American, which at this point looks doubtful, industry insiders say. The pilot cuts are the latest in a series of job cuts first announced last month that would reduce American's workforce by 8 percent or 6,000 workers.