NYTimes.com Article: American Airlines Announces Fare Cuts

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American Airlines Announces Fare Cuts

May 21, 2003
By THE ASSOCIATED PRESS






Filed at 11:44 a.m. ET

FORT WORTH, Texas (AP) -- American Airlines said Wednesday
it would cut fares on some routes and add seats back to
many planes as part of a turnaround plan outlined by the
new chief executive.

Chief executive Gerard Arpey announced the moves at the
company's annual shareholders meeting.

Chairman Robert Brennan said he would not take a salary and
Arpey, who became CEO last month, would not take a raise,
as the world's largest carrier struggles to avoid
bankruptcy.

Fort Worth-based American is working to cut annual costs by
$4 billion, about half of that through employee benefit and
wage cuts. Executives said the company's finances have
improved partly because of a $360 million aid payment from
the government. American lost $1 billion in the first
quarter.

Arpey declined to predict when the airline might return to
profitability.

In early morning trading, shares of AMR, American's parent
company, were down 13 cents to $5.73.

http://www.nytimes.com/aponline/business/AP-American-Airlines-Shareholders.html?ex=1054545610&ei=1&en=1679f03a00c87b6c


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