Thai Airways, which has reported its largest quarterly loss in six years, is to lay off half its staff in Los Angeles.
The airline, which flies to the US city four times per week, said half of its 53 LA employees would be lost in a reorganisation of its operations.
Revenues at the company rose by more than 7% in the three months to 30 June, despite a downturn in the wake of the Asian tsunami.
But it has been hit by rising fuel prices, and the cost of increasing salaries for its 26,000 employees.
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Losses totalled the equivalent of $114m (£63m) for the second quarter of 2005, the airline said this week.
