Jeff Brundage, the company's senior vice president of human resources, wrote in the memo obtained by the Associated Press that American has worked for months to "operate more efficiently and return to profitability."

"Despite our success in lowering costs, some circumstances that greatly impact us, most notably fuel, are out of our control," Brundage said in the memo. "Unless things change significantly, we know we are in for a difficult winter."

Tim Wagner, a spokesman for American, confirmed a memo went out to employees, but said yesterday he could not comment because the company has promised to tell employees about cost-cutting measures before discussing them publicly.

Before yesterday's memo, American had furloughed nearly 2,600 of its 11,000 pilots and more than 4,500 flight attendants, although it was recalling 610 attendants for international routes. The latest cuts would push the number of furloughed pilots above 3,000.

"We're not happy to lose pilots off the payroll or to put their careers in jeopardy," said Capt. Denis Breslin, a spokesman for the Allied Pilots Association. "At the same time, we're also having a hard time overcoming the effects of high fees, historically low fares and historically high fuel prices that are out of control."

Meanwhile, cash-strapped ATA Airlines will be forced to sell off pieces of the company, possibly including its access to gates at Chicago's Midway Airport, to stave off bankruptcy, industry analysts predict.

This week, ATA announced layoffs and a 10 percent pay cut for flight attendants, but said the airline's "cash problems continue to be very serious."

By selling parts of the airline, Indianapolis-based ATA might be able to fend off bankruptcy and earn some money for shareholders, analysts said.

Ray Neidl, an aviation analyst with Calyon Securities in New York, expects ATA to be sold piecemeal. "Buying their whole company means you have to assume liabilities, the corporate culture, the employee contracts you'd have to integrate," he said.

An ATA spokeswoman declined to comment on market speculation about the airline's future.

Another struggling carrier, Delta Air Lines Inc., could file for Chapter 11 bankruptcy protection as early as next week, a source familiar with the matter said yesterday.

The nation's third-largest airline spent the week meeting with attorneys and bankruptcy consultants. It also set up a "war room" in its Atlanta headquarters to plan for the bankruptcy.

Delta could file as early as Wednesday or Thursday, the source said. But the filing could be delayed if the airline is able to obtain $1 billion in pay and benefit cuts it has sought from pilots, the carrier's only unionized work group. Contract negotiations are to take place this weekend.