Cost-cutting target rises to $4 billion

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Wednesday, Nov. 6, 2002 | 9:24 a.m.

DALLAS -- The parent company of American Airlines now says it wants to cut $4 billion from its annual costs, an increase from an earlier target of $3 billion.

Chairman and Chief Executive Donald J. Carty told employees of AMR Corp. about the deeper cuts in a recorded telephone message.

AMR will cut its management ranks by 22 percent from the levels of early 2001, Carty said in the recording, released over the weekend.

The Fort Worth-based company wants to cut expenses to make American more competitive with lower-cost carriers, such as Southwest Airlines. AMR, which also owns the American Eagle regional airline, lost $924 million from July through September as it struggled with lower traffic and fares.