American Airlines announced on Friday that it will lay off 175 pilots in the first half of 2010. Company officials state that the layoffs are occurring because of “reduced flight capacity” and the fact that “not enough pilots are leaving on their own”.

American’s capacity was down 4.9% in the fourth quarter compared to the same period a year ago. While more seats are being filled on flights, this is because the airline has cut the number of seats they sell to better handle reduced demand and high fuel prices. Lay offs will begin February 28 with 80 pilots. The company will not say how much money they are projected to save with these job cuts. American has 7,800 active pilots. The Allied Pilots Association (APA), which represents American pilots, is working with the company to mitigate the impact of layoffs with early retirement benefits.