American Airlines concession agreements call for job losses, pay cuts.(Knight Ridder Newspapers)

Byline: Ina Paiva Cordle

MIAMI _ Far-reaching concessions would cost American Airlines employees thousands of jobs, double-digit pay cuts and many of their holidays, but in exchange they would gain stock options worth nearly a quarter of the company.

If union members approve $1.8 billion in concession agreements, American's workers would get stock options giving them a 24.3 percent equity stake in the airline, plus profit sharing once the company reaches specific profitability targets.

In all, American employees will get 37.9 million stock options.

"Throughout this process the company has committed to the employees that while all the employees had to share in the sacrifice they would also share in the future opportunity," said American spokesman Bruce Hicks. "Right now we only have pain to share. When there is a reward to share, they will share in that."

Union members now have two weeks to ratify the agreements, which were reached Monday. If they vote against them, American is expected to file for Chapter 11 bankruptcy protection.

Wall Street applauded the concession agreements Tuesday. AMR stock rose 90 cents, or 43 percent, to close at $3 in New York Stock Exchange trading. The previous day, the stock rose 52 cents.