American shrinks May schedule, postpones service

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American shrinks May schedule, postpones service

NEW YORK (Reuters) =97 American Airlines said Monday it will cut its planned=
=20
May domestic flight schedule by about 2% and shrink its international=20
schedule by 13%, as the entire airline sector struggles to bring its=20
capacity in line with sagging travel demand. American, the world's largest=
=20
air carrier, barely avoided filing for bankruptcy protection last week by=20
reaching tentative agreements with its workers for $1.8 billion in annual=20
cost cuts. But the continued economic slump, along with the war in Iraq,=20
are still beating down demand for air travel. To add to the misery,=20
airlines worldwide are dramatically cutting back on service to various=20
parts of Asia as Severe Acute Respiratory Syndrome (SARS), a pneumonia-like=
=20
disease, spreads across the region and into other areas of the world.=20
American, the main operating unit of AMR Corp., said Monday that it will=20
postpone the launch of its planned service between Los Angeles and Tokyo=20
until next spring. American, which did not cite SARS as a reason for the=20
delay, said it expected "some strengthening of the marketplace" for service=
=20
between Los Angeles and Tokyo by the spring of 2004.


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