US Airways, American Airlines cut 1,700 jobs

October 29, 2009 09:16:27 AM

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US Airways and American Airlines said Wednesday they were cutting a total of 1,700 jobs as they face turbulence amid prolonged recession.

US Airways said it would cut about 1,000 jobs during the first half of 2010 and reduce service to Europe as it hunkers down to battle weak demand.

The airline will focus on the key network strengths at its three hubs in Charlotte, North Carolina; Philadelphia, Pennsylvania; and Phoenix, Arizona; as well as in Washington and its shuttle service, the company said in a statement.

"By concentrating on our strengths we will be better-positioned to return US Airways to profitability," said Doug Parker, chairman and chief executive.

The Tempe, Arizona-based airline said it would suspend five European destinations served from Philadelphia, "given the weakness in trans-Atlantic revenue": Birmingham, England; London Gatwick; Milan, Italy; Shannon, Ireland; and Stockholm, Sweden.

Among other realignment moves, the company said it would give back its Philadelphia-Beijing flight authority to the government and slash flights to Las Vegas from 64 to 36 daily departures by February.

The announcement came after the airline reported last week a net loss of 80 million dollars in the third quarter as air travel slumps amid the recession and fuel prices rise.

Separately, AMR, the parent of American Airlines, said it was slashing up to 700 management and union jobs in its maintenance and engineering operations to respond to restructuring changes undertaken to cope with the market turbulence.