Struggling with a slump in travel, AA will lay off 323 flight attendants

American Airlines struggling, will lay off 323 flight attendants

Thu, Mar 12, 2009

FORT WORTH (AP) — American Airlines, struggling with a slump in travel, will lay off 323 flight attendants on April 1, the company said Wednesday. The furloughs — layoffs with recall rights — affect some workers who were only recently recalled by the nation’s second-largest airline operator after previous layoffs.

The number of furloughs might have been higher but for some employees taking leaves of absence or sharing jobs, the Association of Professional Flight Attendants said in a message to its members Tuesday. The union said last month that 410 employees were subject to furlough.

Scott Sayres, a spokesman for American Airlines, said the company and union worked hard to provide voluntary alternatives to layoffs, “allowing us to save dozens of jobs.”

“However, we are sorry to announce that we’re still faced with the tough situation of furloughing 323 flight attendants,” Sayres said. He said the 323 would be offered free-travel benefits, but those accepting the perk would lose their recall rights.

American Airlines executives plan to cut the carrier’s U.S. capacity 9% this year, but February traffic tumbled 13.5% from a year earlier. This week, Chief Financial Officer Thomas Horton said the Fort Worth-based airline is ready to cut more flights if the slump continues.

Fewer flights mean less need for flight attendants and other employees.

Shares of AMR rose 12 cents, or 3.8%, to $3.25. The stock is down nearly 70% since the start of the year.