AMR Corp.’s American Airlines will drop flights between Chicago and Buenos Aires and Chicago and Honolulu, among the first steps in a plan announced last week to cut U.S. capacity by as much as 12 percent.
The company’s American Eagle regional airline also will retire its fleet of 35 Saab 340 turboprop aircraft by the end of this year, AMR said in a statement.
Those planes are in addition to as many as 85 jets AMR will stop using to help reduce capacity at American Airlines and American Eagle.
American, the world’s largest airline, announced plans to scale back domestic flights and eliminate thousands of jobs amid a 90 percent surge in jet fuel prices in the past year. The airline also said it would charge $15 for a first checked bag and add or increase other fees to boost revenue.
The changes are intended “to significantly reduce costs and create a more sustainable supply-and-demand balance in the market,” AMR said. Affected customers will be contacted starting next week and moved to other flights.
Flights between Chicago and Buenos Aires will stop Sept. 3, while Chicago-to-Honolulu service will end Jan. 5, American said. From Sept. 3 to Jan 5, American will operate the Chicago-Honolulu flights only on peak-demand days.