HOUSTON - US carrier American Airlines said Wednesday that it wants to eliminate 13,000 jobs as it seeks to cut labor costs by 20 percent.

The announcement was made after the Texas-based company had a meeting with representatives of its three biggest unions, according to The New York Times.

American Airlines said the move would reduce its overall costs by $2 billion a year, including 1.25 billion dollars from employees.

The planned job cuts would amount to 16 percent of the company's work force of more than 80,000. Of the total job cuts, 4,600 would be mechanics jobs, 4,200 ground service positions, 2,300 flight attendants and 400 pilots. Another 1,400 jobs would be cut in management and support services, according to The New York Times.

American Airline parent AMR is the latest of several large US airlines to go through bankruptcy in an effort to reduce costs and debt. Over the last decade, other major US airlines have used bankruptcy proceedings to renegotiate labor contracts, freeze or terminate pensions, and cut debts.

In a letter to employees, American Airlines CEO Thomas W. Horton said the company had lost its competitive edge over the years.

"The world has changed around us and this is our moment to adapt or lose the opportunity forever," he said. 

"Our industry is now defined by the changes our competitors made in restructuring to secure their futures, and the landscape is littered with those airlines that failed to change."

American Airllines' labor costs are said to be the highest compared with its major competitors.

Besides the job cuts, Horton said Wednesday the carrier could also ground older planes and buy hundreds of new aircraft, in an effort to cut fuel costs.

Though other major US airlines have been profitable in the past two years, AMR lost $884 million in the first nine months of 2011. In December alone, the company's losses amounted to 904 million dollars. It has lost more than $11 billion since 2001.

AMR, the third-largest US airlines after United Continental Holdings and Delta, filed for bankruptcy protection in November last year. US Airways Group is evaluating the possibility of a merger with AMR, according to earlier US media reports.

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