AMR, parent company of American Airlines, has announced the first round of reductions to its flight schedule as part of its previously announced cost-cutting programme. These will include:

1. Discontinuing its Chicago - Buenos Aires service effective Sept. 3.

2. Discontinuing its Chicago - Honolulu service Jan. 5, 2009.

3. Discontinuing its Boston - San Diego service effective Sept. 3.

4. Restructuring American and American Eagle operations at San Juan, Puerto Rico beginning in September.

The actions come in the face of record fuel prices and a softening economy.

In the coming weeks, AMR will continue to make additional schedule reductions in other markets and will assess the location- and route-specific impacts of those changes. This will be done to achieve plans to reduce AMR’s fourth quarter mainline domestic capacity by 11% to 12% compared to 2007 levels and its fourth quarter regional affiliate capacity by 10% to 11% compared to 2007.

Fourth quarter consolidated system capacity is expected to decline 7% to 8% year over year, including the capacity reductions that were announced earlier this year.

To effect these changes, AMR plans to retire 40-45 mainline aircraft (mostly MD-80s and some Airbus A300s) and 35-40 regional jets. In an effort to significantly reduce costs, American Eagle also will retire its Saab fleet by the end of the year.
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