WingNaPrayer
Veteran
American has frozen external hiring for management and support staff positions as the company takes further steps to contain costs given soaring fuel prices. The rise in the price of oil – and thus refined jet fuel – and the weakening economy threaten the gradual recovery of American Airlines and other U.S. carriers. In 2008, even with fuel hedging, AMR forecasts annual fuel expense to increase 38 percent to $9.3 billion (averaging almost $3 per gallon). This makes efforts to contain costs, accelerate Fuel Smart initiatives and increase revenue all the more critical.