American Airlines, the world's largest passenger airline, Wednesday said it would cut jobs and service and start charging a 15-dollar fee to check one bag in order to keep afloat amidst soaring oil prices, dpa reported.
The airline, the first US carrier to levy such a charge on the first bag, will also retire up to 85 jets and chop domestic seating by 12 per cent.
Chief executive officer Gerard Arpey said job losses would be in the "thousands," according to Bloomberg financial news service.
The cost of crude oil topped a record 130 dollars a barrel on Wednesday - an 89 per cent increase in the past year.
Extra-baggage fees at other big US carriers now start with the second piece. American's first-bag fee will begin on June 15.
American now operates about 2,200 daily flights with its main jet fleet, and the reductions will be the third this year.