The crisis confronting the US airlines industry worsened on Wednesday as American Airlines said rising fuel costs would force it to eliminate flights, cut thousands of jobs and charge most passengers $15 (£7.60) to check a single piece of luggage.

It declared the extraordinary measures as the spot price for crude oil reached a record $133.82 a barrel, heading above $134 in after-hours trading, and the cost scheduled for delivery in December 2016 surged to an all-time high of $142.14.