American Airlines has warned of 19,000 jobs losses from October unless a US government pay support scheme for airlines suffering under a Covid-19 travel slump is extended.
The cuts would be in addition to 12,500 people who have taken early retirement and 11,000 taking ‘leave of absence’ in October.
The reductions will leave American with at least 40,000 fewer staff working from October 1 than it had when at the start of the pandemic.
The carrier received $5.8 billion from a state Payroll Support Programme (PSP) which ends on September 30.
Chief executive Doug Parker and president Robert Isom said in a letter to staff: “By providing airlines the funds to pay much of our team member salaries and benefits, it ensured the commercial airline industry kept flying in the face of very low demand for air travel and kept our country moving, with all markets continuing to receive safe and efficient commercial air service.
“The only problem with the legislation is that when it was enacted in March, it was assumed that by September 30, the virus would be under control and demand for air travel would have returned.
“That is obviously not the case. Based on current demand levels, we at American now plan to fly less than 50% of our airline in the fourth quarter, with long-haul international particularly reduced to only 25% of 2019 levels.
“So, as September 30 approaches, we have announced reductions in service, including the complete elimination of service to certain markets in early October, and today we are announcing the related reductions in our workforce.”
Even with existing staff sacrifices, “approximately 19,000 of our team members will be involuntarily furloughed or separated from the company on October 1, unless there is an extension of the PSP,” employees were told.
The letter added: “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.”
The executives added: “The coming weeks and months will be some of the most difficult we have ever faced.”