FORT WORTH, TEX. ? American Airlines announced a massive restructuring Tuesday that will cut the size of its work force by 6 percent in an effort to make the world’s biggest carrier competitive with lower-cost rivals.

American, which called the plan critical to its long-term survival, will cut 7,000 jobs, reduce its capacity by 9 percent and retire its entire fleet of 100-seat Fokker planes as it struggles to end its huge losses.

American Airlines employee Norma Torres helps a customer at the American ticket counter in Miami International Airport. The airline plans to eliminate about 7,000 jobs nationwide.

American has several thousand workers at its overhaul base in Kansas City, Mo. It wasn’t immediately clear how many cuts would occur there, but a Senate aide who asked not to be identified said American planned no layoffs for now in Kansas City, though it might make cuts through attrition in the future.

Tuesday’s announcement by American came as the U.S. airline industry continues to be rocked by a slump in travel following the Sept. 11 terror attacks, a tepid economic recovery and fierce price competition.

The industry’s difficulties drove US Airways on Sunday to file for Chapter 11 bankruptcy protection. The nation’s seventh-largest carrier received approval to continue normal operations and hopes to emerge from bankruptcy next year.

Two weeks ago, Kansas City, Mo.-based Vanguard Airlines suspended operations and filed for bankruptcy protection, laying off about 1,000 employees and stranding 6,500 passengers.

The new initiatives by American, coupled with cost-saving measures that implemented in recent months, will mean $1.1 billion in annual operating savings, the company said.

“We must get our costs down in order to compete, and must focus on the products our customers want and are willing to pay for,” said Donald J. Carty, chairman and chief executive, in a news release.

AMR Corp., American’s parent company, said last month that it lost $495 million in the second quarter, blaming the result on low fares driven by discount carriers.

American Airlines said the 7,000 new job cuts would occur by March 2003. The company said it would tell workers about the cuts after its October and November schedules were in place. The airline said it planned to reduce capacity by 9 percent by November from summer 2002 levels.