AirTran told employees it will cut salaries and wages by about 10 percent and warned that more cutbacks may be necessary as it struggles with high fuel prices, according to a newspaper report on Wednesday.

Non-fuel operating costs at AirTran are about half those of most major airlines, but Chairman and Chief Executive Bob Fornaro told employees in an internal memo that "the high cost of oil poses a serious threat to the future of AirTran," The Wall Street Journal reported.

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