American Airlines to cut 19,000 jobs unless extra aid released
American Airlines has warned that it will be forced to cut 19,000 jobs in October unless the US government provides the carrier with further financial assistance.
In total, around 40,000 jobs – 30 per cent of the the airline’s workforce – will be lost, including voluntary redundancies and other departures.
Back in March, US airlines received $25bn from the federal government in order to prop up payrolls through to September, of which American claimed $5.8bn.
However, with the coronavirus pandemic continuing to weigh down global air travel, talks over a further $25bn in support have stalled in Congress.
In a memo to staff seen by Reuters, chief executive Doug Parker and president Robert Isom said that with extra federal funding American would be able to avoid the cuts.
They said that the measure had “extraordinary bipartisan support”, but the funding will depend on whether a wider coronavirus support package could be agreed in the House of Representatives.
Under the redundancy plans, American will cut 17,500 union workers, including 1,600 pilots and 8,100 cabin crew, as well as a further 1,500 employees in management positions.
Prior to the pandemic, the airline had 140,000 employees. Fellow US giant United Airlines said that it had sent notices of potential furlough to 36,000 of its staff.
With travel bans still in place, American said it would fly just 50 per cent of its capacity in the final quarter of the year.
American said last week it was suspending flights to 15 small U.S. cities in October without more federal aid, which required a certain level of flying.
“We must prepare for the possibility that our nation’s leadership will not be able to find a way to further support aviation professionals and the service we provide, especially to smaller communities”, Parker and Isom said.