The parent company of American Airlines intends to shed 13,000 jobs - around 15% of its workforce.
AMR wants to cut staff costs by 20% in a bid to reduce spending by $US2 billion and raise revenue by $US1 billion per year.
AMR also wants to make changes to its staff pensions. The BBC reports its workforce of 88,000 is mostly represented by three main unions, which are opposed to the changes.
AMR said it plans to begin negotiations with them shortly.
AMR lost $US884 million in the first nine months of 2011, and on Tuesday disclosed a $US904 million loss for December alone.
The company filed for bankruptcy protection in November. It has lost more than $US11 billion since 2001.
