American Airlines charges for checking bag

FORT WORTH, Texas, May 21 (UPI) -- American Airlines said Wednesday it would charge for checked baggage and cut back on jobs, flights, and fleet size.

American, which is owned by AMR Corp., said it would charge $15 for the first checked bag for many passengers.

The largest U.S. airline also plans to remove 85 older aircraft from its fleet of about 960 this year and reduce service by 11 percent to 12 percent during the fourth quarter of 2008, The New York Times reported.

The company did not say how many jobs would be lost.

American "cannot afford to sit by hoping for industry and market conditions to improve," Chief Executive Officer Gerard Arpey said at the annual shareholder meeting in Fort Worth, Texas.

Fuel costs, up more than 80 percent in the past 12 months, have caused many airlines to reduce flights to maximize passenger loads on their remaining schedules.