American, United say flights to small cities are at risk unless Congress extends payroll program
Small cities like Dubuque, Iowa, and New Haven, Connecticut, could be without air service — maybe for good — in eight days if the U.S. Congress does not extend airline payroll assistance.
American Airlines will suspend flights to both cities that it serves exclusively on Oct. 7 after requirements under the federal government's coronavirus aid package, or CARES Act, expire. And that may just be the beginning, with the leaders of both American and United Airlines saying their respective carriers may have to end these flights — "critical infrastructure" in the words of United CEO Scott Kirby — and others to small cities amid the historic hit to air travel from the pandemic.
"We're trying to maintain those critical links to communities but, much like our employees, at some point you can't keep everything going," Kirby told reporters in front of the U.S. Capitol on Tuesday. He declined to name cities as American has, but he implied that cuts were likely to stem the airline's losses that amount to an average of $25 million a day.
Sign up for TPG's free new biweekly Aviation newsletter for more airline-specific news!
The CEOs of American, JetBlue Airways and United were out knocking on doors on Capitol Hill to drum up support for an extension of CARES Act protections for employees. They were flanked by leaders of major labor unions, including the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA), as well as the Airlines for America (A4A) trade group.
But the event — the first major in-person press conference for the airline leaders and A4A since March — signaled just how precarious the fate of a possible extension is. There is a little over a week until the first CARES Act protections expire on Sept. 30. After that, tens of thousands of airline staff are expected to be furloughed across the U.S.
"If Congress can't come together on a mechanism to extend the [payroll support program] by Oct. 1 — eight days from today — small communities will lose air service and 19,000 American Airlines aviation professionals will be furloughed," said American CEO Doug Parker in front of the Capitol.
Related: Should Congress dole out more money for airline employees?
While House Democrats passed a broad $3 trillion coronavirus relief bill in May, a smaller Republican-led measure failed in the Senate earlier in September. On Sept. 21, Sens. Roger Wicker (R-Miss.) and Susan Collins (R-Maine) introduced a $28 billion package for airlines alone that could be the airline industry's best chance at extending payroll support through the end of March.
Additional aid for just airlines faces criticism. While there is bipartisan support for assistance, many feel that it should come as part of a broad package that also extends unemployment benefits to the millions of Americans out of work due to COVID-19 and offers support for small businesses.
However, many on Wall Street think additional relief is misguided. Those critics argue that the funds would only put off inevitable cuts in staff and air service at airlines that will be needed without a quick rebound — something that most agree will not happen.
The number of travelers on U.S. domestic flights was down 66% year-over-year during the week ending Sept. 20, the latest data from A4A shows. Few expect the number of flyers to climb significantly before the end-of-year holidays.
Related: American Airlines makes good on threat to ax cities, cuts 15 in 'first step'
Airlines see it differently. If payroll assistance is extended through March, both Kirby and Parker said that they believe their carriers will have a better view of future travel trends that would allow them to avoid — or at least minimize — possible furloughs.
"This is a jobs program," added AFA president Sara Nelson at the Capitol. She emphasized that all funds in the proposed payroll assistance extension would go directly to employee salaries and not to airlines' other expenses.
The impact of furloughs is not limited to just lost jobs. Once staff leave an airline they lose necessary federal certifications; requiring re-training and re-certification when they return to work. Airlines argue that this could slow their ability to add flights back when travel resumes in earnest.
Not every airline faces significant furloughs on Oct. 1. Southwest Airlines will not furlough staff before 2021 and Delta Air Lines has avoided flight attendant and ground staff furloughs through voluntary actions. In addition, on Tuesday the ALPA chapter at Delta said the airline has agree to put off up to 1,900 pilot furloughs until at least Nov. 1.
Related: Delta works towards eleventh-hour deal to avoid pilot furloughs even as outlook remains 'grim'
On Sept. 15, Delta CEO Ed Bastian told staff that the outlook the payroll assistance extension was "uncertain."
Like American, Delta has begun trimming its network once the CARES Act expires. It has quietly pulled Worcester, Massachusetts (ORH) from its schedule beginning Oct. 1 with more small cities expected to follow. The airline previously suspended flights to 12 airports and ended service to Ottawa (YOW) in Canada.
Small airports may need to look locally to keep air service if CARES Act protections end. The communities of Roswell, New Mexico, and Stillwater, Oklahoma, have stepped up to keep American flying beyond Oct. 7. More communities may have to do the same if they are to ensure commercial service continues.
Related: US airlines 'fighting for survival' with no hope of V-shaped recovery
But, to be clear, small communities and staff stand to hurt the most without additional aid. The airlines themselves are not at risk — even with the prognosis of a slow recovery in air travel that could stretch into 2024.
"American Airlines is going to be fine… no one in our industry is at risk of true financial duress," said Parker. "What this is about, again, is doing what's right for our team."
Related: Flight attendants will make up majority of United's 16,000 employee furloughs
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express 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.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees