American Airlines Lays off 19,000 Employees in October

The American airline is demanding from the government a new support plan for the sector, otherwise it will be forced to lay off massively,  warns.

The airline American Airlines, hit hard by the fall in air transport since the start of the pandemic, said on Tuesday that it would lay off 19,000 employees in October if it did not receive new aid by then.

American Airlines and the rest of the major carriers in the United States received a total of $ 25 billion from the government in March, in return for which they pledged not to cut jobs until September 30.

But when this financial aid was approved in March, “it was thought that by September 30 the virus would be under control and demand for plane tickets would have returned. This is absolutely not the case,” officials said. of American Airlines in a letter addressed to employees on Tuesday and sent to the gendarme of the American Stock Exchange, the SEC.

Since then, more than 12,500 employees have made the decision to leave the company and 11,000 have offered to take unpaid leave.

But these “sacrifices” are not enough in the face of the decline in the activity of the company, lamented CEO Doug Parker and operations manager Robert Isom in this message.

The company plans to fly only 50% of its capacity in the fourth quarter. Long-haul international flights are particularly affected, with activity in this niche reduced to 25% of what it was in 2019.The company has also made the decision to close some lines to small airports.

Political blockage
American Airlines, which had just over 130,000 full-time equivalent employees at the end of March, therefore needs 40,000 fewer people in October. The company had already warned in July that it could lay off up to 25,000 people.

All the companies and unions in the sector have been pushing for new aid for air carriers for several weeks and several parliamentarians, Democrats and Republicans, have already lent their support.

But such a decision “is linked to a larger plan to support the economy due to Covid-19, on which our political leaders have not yet been able to agree,” lament American Airlines officials .

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American Airlines Lays off 19,000 Employees in October - /10

Summary

The American airline is demanding from the government a new support plan for the sector, otherwise it will be forced to lay off massively,  warns.

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