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Thursday, 28 August 2008

The magic number: American Airlines axes 1,500 as well

19/07/2008 7:38:00 AM.  | Victoria Owens
It seems Qantas isn't the only airline forced to make massive job cuts due to rising fuel prices.

Just a day after Qantas announced plans to axe 1,500 workers, American Airlines has since revealed it will also cut 1,500 jobs following a loss of $1.45 billion.

Airline analyst Ray Neidl says airlines are shrinking to cope with increasing cost of crude oil.

“They want to get the price of tickets up so they can meet the increased fuel costs,” he told LIVENEWS.com.au.

“As the airline shrinks there will be less airplanes – which they are grounding – and with less airplanes you will need less employees to service the airline.”

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