American Airlines to cut 921 flight attendant jobs

AMR Corp's American Airlines said on Tuesday it would cut 921 flight attendant jobs, part of a previously announced capacity cut as the industry struggles with flagging demand.

The 921 jobs amounts to about 6 percent of the total number of American's flight attendants and includes 449 positions that were eliminated through voluntary options. The job cuts will be effective October 1.

The total number of job cuts were fewer than the 1,200 the airline predicted in June.

The airline industry is in downsizing mode this year, battered by volatile fuel costs and weak demand in the economic recession.

AMR said in June that it would cut capacity by 7.5 percent this year. Other carriers also announced fresh capacity cut targets. Delta Air Lines said it would cut capacity systemwide by 10 percent, with reductions starting in September.

On Monday, American warned that employees in airport services jobs could be cut due to capacity shifts and declines in demand travel demand during the winter.

Shares of AMR closed down 4.21 percent at $5.23 on the New York Stock Exchange.

(Reporting by Kyle Peterson, editing by Leslie Gevirtz)