American Airlines says it will furlough 19,000 workers unless Congress agrees on more COVID-19 relief (AAL)
American Airlines will furlough and lay off 19,000 employees on October 1, the airline said in a memo on Tuesday. The furloughs come as the coronavirus pandemic continues to severely depress air travel demand. Including buyouts and early retirements, American will shrink by nearly 40,000 employees compared to pre-pandemic levels. Visit Business Insider's homepage for more stories.
American Airlines will furlough up to 19,000 employees on October 1, the airline said in a memo to staff on Tuesday, unless Congress extends the CARES Act's payroll support program. "Today is the hardest message we have had to share so far," CEO Doug Parker and airline president Robert Isom wrote in a memo to employees, seen by Business Insider. The furloughs include 17,500 front-line employees, as well as 1,500 management and support workers, whose furloughs were announced in late June. About 1,600 pilots, 8,100 flight attendants, and 2,225 fleet service specialists are included in the front-line furloughs. Airlines have been hit particularly hard by COVID-19, with travel demand collapsing early in the pandemic and making only modest recoveries since, hampered by summer spikes across the US. Are you an employee at American or another airline? Contact this reporter with tips, thoughts, or other feedback at email@example.com. American received more than $5.8 billion in payroll support through the CARES Act. The airline agreed not to furlough or cut pay for workers until October 1 in exchange for the aid. "The only problem with the legislation is that when it was enacted in March, it was assumed that by Sept. 30, the virus would be under control and demand for air travel would have returned," Parker and Isom wrote. "That is obviously not the case." The airline needs to shrink by 40,000 employees compared to its size entering the pandemic, Parker and Isom wrote. About 12,500 employees have taken early retirement or other buyout packages, while a further 11,000 have applied for voluntary unpaid leaves of absence in October. American and and other airlines, which expect to emerge from the pandemic significantly smaller, have urged employees to take such buyouts or voluntary unpaid leave programs. American plans to fly about 50% of 2019 levels in the fourth quarter, Parker and Isom wrote, with international flying at just 25% the previous year. "So, as Sept. 30 approaches, we have announced reductions in service, including the complete elimination of service to certain markets in early October, and today we are announcing the related reductions in our workforce," the pair wrote. The furloughs will be distributed among work groups based on demand — for instance, work groups with a higher emphasis on international travel will likely be more heavily impacted. The memo added that furloughs may be avoided if the CARES Act's payroll support program is extended. "Led by your labor unions, with the support of the industry, we have generated enormous bipartisan support for such an extension," Parker and Isom wrote. "But, despite this broad bipartisan support, a PSP extension is tied up in a larger COVID-19 relief package, which our elected officials haven't yet been able to negotiate." American also announced last week that it would cut unprofitable routes that it was operating in order to comply with CARES Act terms, barring an extension of the support. Delta Air Lines announced Monday that more than 1,900 pilots will be furloughed. It has not announced numbers of other work groups. Are you an employee at American or another airline? Contact this reporter with tips, thoughts, or other feedback at firstname.lastname@example.org.SEE ALSO: COVID-19 could eliminate 197 million travel industry jobs and wipe $5.5 trillion from the global GDP, a trade group warns Join the conversation about this story » NOW WATCH: What it's like inside North Korea's controversial restaurant chain
More like this (3)
Funding used to protect workers will expire on 30 September, and airlines have already announced huge...Funding used to protect workers will expire on 30 September, and airlines have already announced huge layoffsUS airlines are facing what one leading analyst calls a “Thelma and Louise” moment as the industry approaches a government-funding deadline that could decide its future.On 30 September a government aid packages used to protect workers expires, the airlines have already announced huge layoffs but what comes next could be even worse. Continue reading...
American Airlines said it would furlough 19,000 workers if lawmakers do not extend aid to the...American Airlines said it would furlough 19,000 workers if lawmakers do not extend aid to the industry, which has been hammered by the pandemic.
American Airlines says it will stop flying to 15 US cities in October leaving some without an airline – here's the full list
American Airlines is suspending service to 15 cities across the US on October 7 as federal...American Airlines is suspending service to 15 cities across the US on October 7 as federal assistance through the CARES Act expires. Secondary cities across the airline's route network from New Mexico to Connecticut are on the chopping block with some cities losing all air connectivity once American leaves. Cities served only by American's regional arm – American Eagle – are most affected. Visit Business Insider's homepage for more stories. American Airlines announced changes to its route network on Thursday that will see the carrier exit 15 cities across the US in October. Another sign of a slow recovery for the airline industry, the cuts will lean the airline's flying after government assistance provided through the CARES Act expires on October 1. Under the sweeping stimulus package that included billions in payroll assistance for airlines, American had been required to maintain service throughout its existing route network – even if flying with little to no passengers on some flights – unless an exemption was granted by the Department of Transportation. Secondary cities served by American's regional arm – American Eagle - are largely affected, with some slated to lose all air connectivity altogether once the carrier pulls out. Here's the full list of cities American will be saying goodbye to on October 7: Del Rio, Texas: Del Rio will be left with no air service by any passenger carrier after losing its sole route to Dallas/Fort Worth. Dubuque, Iowa: Dubuque will be left with no air service by any passenger carrier after losing its sole route to Chicago. Florence, South Carolina: Florence will be left with no air service by any passenger carrier after losing its sole route to Charlotte. Greenville, North Carolina: Greenville will be left with no air service by any passenger carrier after losing its sole route to Charlotte. Huntington, West Virginia: Huntington will lose its route to Charlotte, leaving low-cost Allegiant Air as the city's only airline. Joplin, Missouri: Joplin will be left with no air service by any passenger carrier after losing its routes to Chicago and Dallas/Fort Worth. Kalamazoo, Michigan: Kalamazoo will lose one-third of its airlines when American stops flying there from Chicago but will lose no routes as United also offers service from the Windy City. Lake Charles, Louisiana: Lake Charles will see its number of routes and cities served cut in half when American takes away its service to Dallas, leaving United Express as the sole carrier with service to Houston. New Haven, Connecticut: New Haven will be left with no year-round air service by any passenger carrier after losing its routes to Philadelphia and Charlotte. Roswell, New Mexico: Roswell will be left with no air service by any passenger carrier after losing its routes to Dallas/Fort Worth and Phoenix. Sioux City, Iowa: Sioux City will temporarily be without air service when American ends its routes to Dallas/Fort Worth and Chicago. United is scheduled to begin service to the city from Denver on October 14. Springfield, Illinois: Springfield will lose one-third of its airlines and routes once American ends service from Dallas/Fort Worth. Allegiant Air and United Express will continue to serve Punta Gorda and Chicago, respectively, from the airport. Stillwater, Oklahoma: Stillwater will be left with no air service by any passenger carrier after losing its route to Dallas/Fort Worth. Williamsport, Pennsylvania: Williamsport will be left with no air service by any passenger carrier after losing its route to Charlotte. American said in its statement that the route suspensions are only scheduled for a one-month period from October 7 through November 3, with the possibility of an extension or cuts to more cities if demand doesn't spring back. Rival Delta Air Lines made similar changes to its network in June, cutting service to 11 cities in its US network. Delta did not say when, if ever, it would return to those markets. More travelers have been taking to the skies over the summer, according to passenger numbers published by the Transportation Security Administration, but the period from Labor Day to Thanksgiving typically sees a drop off in leisure travel that may hinder the industry's recovery, especially if business travel does not return. SEE ALSO: The Coast Guard and police are on the hunt for a renegade pilot who flew a plane under a busy Michigan bridge DON'T MISS: Airbus' new long-range single-aisle jet is reportedly moving full steam ahead – here's why it's the perfect plane for airlines post-pandemic Join the conversation about this story » NOW WATCH: Epidemiologists debunk 13 coronavirus myths