American, Delta Expect Further Cost Cutting

Two leading U.S. airlines--American and Delta--pledged Wednesday to keep cutting costs in order to help speed recovery in the battered industry.

First-ranked American Airlines, a subsidiary of Ft. Worth-based AMR Corp., said it may be forced to lay off members of its management and support staffs this year due to poor earnings.

The specific number of cuts will not be determined for another few weeks, when the airline managers hammer out their budgets for next year.

AMR said the number of jobs to be eliminated will be “substantial” but probably will not exceed last year’s 665 job cuts.

Meanwhile, third-ranked Delta Air Lines Inc. said it is considering consolidating in Europe.

“We’re making tough decisions with our transatlantic operations. We will do more of this as we really look at the summer results,” Chief Executive Ronald Allen told reporters in New York.

“We are willing to take whatever steps necessary to turn the Atlantic into a profitable operation,” Allen said.

Delta has been burdened by its purchase of defunct Pan Am’s overseas routes in 1991.