New York  - US aviation giant American Airlines is bracing for massive extra costs and planning major layoffs as it struggles to cope with rising fuel prices, the company announced.

Media reports Thursday said that amid the airline's plans to reduce its fleet, upwards of 7,000 jobs, or eight per cent of the payroll, would be slashed.

The airline's parent concern AMR said the costs of reducing fleets and payrolls would come to 1.3 billion dollars.

The largest US air carrier had announced in May its plans to retire 75 planes from its fleet - affecting ist MD-80 and Embraer-135 planes - and cut up to 12 per cent of its flight services.

The job reductions would be the biggest yet among US air carriers which are struggling with rising fuel costs and overcapacity. Other airlines are also planning job cuts and reductions in services. (dpa)