US Airways will trim its workforce by 1,000 employees, including 200 pilots, as part of its restructuring efforts.
The loss making airline would be reducing the number of employees in the first half of 2010.
The reductions would include about 600 airport passenger and ramp service positions, approximately 200 pilot jobs and nearly 150 flight attendant positions, US Airways said in a statement on Wednesday.
In a letter to the employees, the carrier's chairman and CEO Doug Parker said it was a difficult decision to make.
"By focusing on our strengths and eliminating unprofitable flying, we will increase the likelihood of returning US Airways to long-term profitability, which is in all of our best interests," Parker said.
"As we work through these changes, we'll do all we can to minimise the impact of these reductions on our current employees," Parker noted.
US Airways had a third-quarter loss of $80 million.
The restructuring initiatives include bringing down Las Vegas flights from 64 to 36 daily departures by February 2010 and the move has been necessitated due to high fuel prices and continued weak demand associated with the Las Vegas market.
"By concentrating on our strengths, we will be better positioned to return US Airways to profitability, which will result in ...better returns for our shareholders and greater job stability," Parker said.