American Airlines to Lay Off 1,000 Managers : Airlines: The industry leader’s move is part of a company plan to cut costs by $300 million.

With little relief in sight for troubled airlines, industry leader American Airlines on Thursday said it plans to lay off as many as 1,000 managers as part of a plan to cut costs by $300 million next year.

“American is certainly in better financial shape than many of its competitors,” said Ernest Arvai, an airline industry consultant. “If American makes a move like that, you know times are pretty bad in the industry.”

The layoffs, which will take place in November, will reduce the management payroll at the nation’s largest airline by about 10%. American spokesman Al Becker said, however, that the management layoffs account for only a small portion of the $300 million in cost savings the airline will seek next year. American has not decided on other areas to be cut, he said.

The airline’s ranks of pilots, flight attendants and mechanics have not been approached about making concessions, Becker said. Dallas-based American employs more than 116,000 workers worldwide.

“We are loathe to take this step,” said American Chairman Robert L. Crandall in a statement. “However, our actions reflect the dismal financial condition of the entire airline industry and the absolute need to find a better match between costs and revenues.”

Industry analysts said American has little choice but to cut costs. During the last two years, the airline has posted nearly $300 million in losses, and most analysts expect the airline to lose money again this year.

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On the New York Stock Exchange, news of the cost-cutting programs boosted American shares, which rose $1.625 to $58.25 on Thursday.

The management layoffs--the first at American in about a decade--are the latest blow for the aggressive carrier. In the last few weeks, the airline conceded the failure of the simplified air-fare plan that it introduced this spring. During the summer, the carrier--proud of its cutting edge use of information and technology--halted the development of a new computer reservations system for hotels and auto rental companies, taking a $109-million after-tax write-off.

Last year, the airline postponed or canceled nearly $8 billion in aircraft orders.

As a whole, the airline industry has lost nearly $7 billion during the last two years. Fare wars and a sluggish economy dashed any hopes the industry had for a recovery this year. Most major airlines have announced either layoffs or have asked for wage and benefit concessions from employees.

“If the airlines are a leading economic indicator, we are not out of the woods yet,” Arvai said.