News: American Airlines may cut 19,000 jobs in October

Talent Management

American Airlines may cut 19,000 jobs in October

Airlines have pushed for an extension of $25 billion in federal payroll aid to avoid furloughs. However, when the financial aid expires, it may have to cut jobs.
American Airlines may cut 19,000 jobs in October

American Airlines may let go 19,000 employees in October when federal aid that protected those jobs expires and as the coronavirus pandemic continues to devastate travel demand. Airlines the worst hit by the pandemic, many firms have had to retrench workforce and introduce pay cuts. 

While the situation is slowly getting better, the recovery will take much more time. Until September 30, American Airlines is prohibited from laying off workers. The Texas based airline said its fourth-quarter capacity will be half of the year-ago level and that international long-haul flights will be just 25% of its 2019 schedule.

“We have come to you many times throughout the pandemic, often with sobering updates on a world none of us could have imagined,” wrote American Airlines CEO Doug Parker and its president, Robert Isom in a note to the employees. 

The note further read, “Today is the hardest message we have had to share so far – the announcement of involuntary staffing reductions effective Oct. 1.”

The involuntary cuts include furloughs of 17,500 union workers, including flight attendants, pilots and mechanics, and 1,500 administration and management jobs. 

Other airlines have also warned about job cuts. Delta Air Lines on Monday said it plans to furlough 1,941 pilots unless it can reach a cost-cutting agreement with the labor union. United warned 36,000 employees last month that their jobs are at risk but the impact of voluntary programs on final numbers hasn’t yet been disclosed. 

Labor unions and carriers have urged lawmakers to provide another $25 billion in aid to preserve jobs through March. The earlier relief was based on the assumption that the virus might be under control and travel industry could enter the recovery phase. However, the situation is still not under control and vaccination is still being developed. American’s labor unions on Tuesday again urged Congress to approve the aid to save the thousands of jobs. Let's see if their plea gets heard and airlines get some relief to avoid furloughs and retrenchment. 

Image Credits: AmericanAirlines

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Topics: Talent Management, #Layoffs, #COVID-19

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