FORT WORTH, Texas -- American Airlines said today 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.
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