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American Airlines to cut 19,000 jobs in October without aid

Video Credit: Reuters - Politics
Published on August 25, 2020 - Duration: 01:47s

American Airlines to cut 19,000 jobs in October without aid

American Airlines said on Tuesday its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.

Colette Luke has the latest.

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American Airlines to cut 19,000 jobs in October without aid

American Airlines said on Tuesday that unless federal aid is extended, its workforce will shrink by 40,000 in October, including 19,000 involuntary cuts.

After Tuesdayโ€™s announcement, American stock fell 4.4%, dragging down other airline shares.

In March, airlines received $25 billion in U.S. government stimulus funds meant to cover payrolls and protect jobs through September.

Airlines and unions have lobbied Washington for another $25 billion before federal funds expire, but talks have stalled as Congress struggles to agree on a broader coronavirus relief package.

Airlines argue that the industry is essential to a quick economic recovery during a pandemic, that has killed more than 175,000 Americans and produced a recession that has seen the loss of millions of jobs.

Another large U.S. carrier United Airlines has sent notices of potential furloughs to 36,000 employees.

Delta Air Lines announced on Monday furloughs of nearly 2,000 pilots but has said the numbers could be reduced if they agree to a cut in minimum pay.

In a company memo seen by Reuters, based on current demand levels, American now plans to fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels.

American, which had 140,000 employees before the pandemic, said last week it was also suspending flights to 15 small U.S. cities in October.

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