American Responds To Jet-Fuel Crisis, Lays Off 200 Pilots

Fort Worth, Texas (AHN) -- American Airlines, the largest airline in the U.S., is going to lay off 200 pilots in October as it struggles to keep its wings in the air with the fuel crisis showing no signs of improving.

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 it proposed to the Allied Pilots Association "would provide financial incentives for senior captains who may be ready to voluntarily leave and create advancement opportunities for junior pilots."

Wagner told media outlets 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.