American Airlines to furlough 19,000 workers when federal aid ends
American Airlines will layoff 19,000 workers in October as federal payroll aid expires.
American announced the move Tuesday in a memo to employees from CEO Doug Parker and president Robert Isom. The move will affect about 17,500 frontline workers and another 1,500 — previously announced — from the company’s management.
"We have come to you many times throughout the pandemic, often with sobering updates on a world none of us could have imagined," Parker and Isom said in the memo. “Today is the hardest message we have had to share so far – the announcement of involuntary staffing reductions effective Oct. 1.”
American had already warned last month that it could be forced to lay off up to 25,000 workers if Congress did not extent the payroll protection aid program that currently helps U.S. carriers covers workers’ salaries.
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But that funds from that program expire Sept. 30, and American says it will need dramatically fewer employees to run its operation as travel has plummeted amid the pandemic.
Already, nearly 23,000 American employees had committed to leaving the company – either through early out and retirement programs or through an unpaid leave of absence. But that was not enough to prevent the involuntary furlough of tens of thousands more, the carrier said.
“In short, American’s team will have at least 40,000 fewer people working Oct. 1 than we had when we entered this pandemic,” Parker and Isom said in their letter. “We have worked to mitigate as many involuntary reductions as possible through voluntary programs.”
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“Even with those sacrifices, approximately 19,000 of our team members will be involuntarily furloughed or separated from the company on Oct. 1, unless there is an extension of the (Payroll Support Program),” they added.
American already has drastically cut its schedule, and it’s route map is set to shrink too.
The carrier said last week that it will drop 15 cities from its route map – destinations ranging from Williamsport, Pennsylvania, to Roswell, New Mexico – as other aid package funds and requirements expire.
As for the layoffs, American didn't paint an optimistic picture, but did say a glimmer of hope remained.
"The one possibility of avoiding these involuntary reductions on Oct. 1 is a clean extension of the PSP," Parker and Isom said. "Led by your labor unions, with the support of the industry, we have generated enormous bipartisan support for such an extension."
Elsewhere: Southwest Airlines is cutting more than 100 routes from its ‘full’ schedule this winter
But a work on a new aid package remains bogged down in Congress. It's prospects are uncertain, at best. And even if Congress does act to pass another aid package, it's uncertain if there'll be another lifeline thrown to airlines.
"So 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," wrote Parker and Isom.
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Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees