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American CEO Doug Parker tells workers to 'tear up' furlough notices after new relief bill

March 10, 2021
•
3 min read
United Airlines And American Airlines Warns Of Furloughs As Travel Remains Devastated From Pandemic
American CEO Doug Parker tells workers to 'tear up' furlough notices after new relief bill
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It's the news every airline worker has been waiting to hear.

The next round of furloughs is officially canceled at American Airlines, following the passage of the $1.9 trillion American Rescue Plan Act, the latest pandemic aid package. They're canceled at United, too. Combined, that staves off the furloughing of about 27,000 workers at those two airlines alone at least through September.

The bill, which is expected to be signed into law by President Biden in the coming days, includes an extension of the Payroll Support Program (PSP) that was first featured in the April, 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The $15 billion payroll support program is, in essence, meant to allow airlines to continue to pay employees even as revenue has plummeted amid the coronavirus pandemic. Airline labor groups have described it as financial aid to airline workers, which is simply distributed through the airline payroll systems.

"“For Flight Attendants and other aviation workers this bill passage means continuing the historic Workers First Payroll Support Program that we achieved in the CARES Act a year ago," Sara Nelson, president of the Association of Flight Attendants, said in a statement. "Aviation workers will receive a paycheck and healthcare through September, and stay current on our certifications so we’re in place to meet demand as vaccinations are readily available and travel returns to the skies."

The airline and broader travel industries have been hit especially hard by the pandemic. U.S. airlines lost a combined $35 billion in 2020, with passenger numbers down more than 60% from 2019 levels.

To receive aid, airlines must agree to not furlough workers before Sept. 30, 2021.

American Airlines had previously notified 13,000 workers of imminent furlough if PSP funding was not renewed.

More:What we know about the data breach targeting frequent flyer info

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"For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled – you can tear them up," CEO Doug Parker said in a letter to employees.

United had planned to furlough about 14,000 workers without an extension.

"We have been strategically setting United Airlines up to emerge from this as the best global airline in the world," United CEO Scott Kirby said in his own message to employees. "But a large part of that preparation relies on one of our greatest assets: our frontline employees. By extending PSP, our teams will be able to remain current in their training and ready to match expected future demand."

Although international travel demand is not expected to meaningfully recover before 2022, airlines have expressed increasing optimism over domestic travel demand, particularly as COVID-19 vaccine rollout continues.

On Wednesday, President Biden said that all Americans will have access to the vaccine by the end of May.

Featured image by Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.