News: More layoffs at American

Yesterday American Airlines announced that it’s going to cut almost 7,000 full-time employees by the end of 2008.  Flights will be cut from Chicago, St. Louis, Dallas, and Laguardia.  American service will be completely eliminated in Oakland, California; Barranquilla, Columbia; and London’s Sansted; American Eagle is shutting down its service to Albany, New York; Providence, Rhode Island; Harrisburg, Pennsylvania; San Luis Obispo, California; and Samana, Dominican Republic.  Eek!  On Wednesday, AirTran said it’s going to cut employee pay by 10%.  These hits to the airline industry are due to the high fuel prices.  Southwest is the only airline to escape unscathed due to its smart hedging.  Source: CNN.

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