Today Continental Airlines announced that it plans to cut a total of 21 aircraft from its fleet by the end of the year. The airline also plans to cut another 10 in 2009. The airline said that it forecasts that its total fleet will now shrink from 373 aircraft to a total of 344 by the end of 2009.

The airline is grounding 67 of its Boeing 737-300 and 737-500 aircraft. However, the airline will continue to take delivery of newer 737-800s and 737-900s — so the net impact will be less — a net reduction of about 31 aircraft — give or take.

On the job front, the airline announced it is going to cut about 3,000 employees, including some at the management level, although the airline said that it hopes it can eliminate most positions through voluntary buyouts. The airline said that details on the voluntary programs will be made available next week.

While some management and clerical positions will be eliminated sooner, most reductions will take place after the summer season.

The airline announced that it now expects to operate 16% fewer domestic mainline flights and reduce its domestic mainline capacity 11 percent% compared to the fourth quarter of 2007.

Ticker: (NYSE:CAL)