Japan Airlines has announced plans to cut 4,300 jobs - about 8% of its staff - as it tries to return to profit.
JAL remains Japan's biggest carrier
The announcement comes as it reported a net loss of 10.8bn yen ($89.7m; £45m) in the last three months of 2006.
High oil prices and sluggish demand have been blamed for the loss at JAL, which was almost identical to the same period in 2005.
Safety lapses at the airline and a dip in the popularity of ski travel have hit passenger numbers.
The job cuts, to be implemented by 2010, aim to cut staffing costs by 50bn yen.
Japan Airlines posted a loss of more than 47bn yen in the year to March 2006.
It has been trying to regain passenger confidence after a string of safety lapses since 2005 which include an engine fire and wheels falling off during a landing.
No-one has been injured in any of the incidents, but the scares have prompted some passengers to travel with rival All Nippon Airways.