Discount carrier AirTran Airways is cutting 480 jobs, or more than 5 per cent

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of its work force, amid difficult financial times due largely to soaring fuel prices, a company executive has said.

The Orlando, Florida-based airline told employees yesterday that 180 pilot jobs and 300 flight attendant jobs will be eliminated effective September 6, according to Kevin Healy, senior vice president of marketing and planning for AirTran Airways, a subsidiary of AirTran Holdings Inc. Flights also will be reduced in September, Healy said.

AirTran is offering an early out voluntary programme for employees with at least five years of service. Eligible employees who are accepted for the programme will receive six to 12 months of medical benefits and six to 12 months of flight privileges, Healy said.

AirTran has about 8,900 employees, including 1,450 pilots and 2,000 flight attendants.

Healy said there could be other job cuts at the company in the future as officials deal with oil prices that have jumped to more than USD 140 a barrel. He said the hope would be to achieve any further job cuts that are necessary through attrition.

"We're looking at other areas of the company," Healy said.

News of the planned job cuts comes after AirTran told employees on Wednesday that it is seeking to cut its overall employee pay by about 10 per cent, and it warned that it may need to cut wages further in the future.