BUSINESS + ECONOMY

American Airlines will lay off 19,000 workers if it doesn’t get additional federal help

Aug 25, 2020, 10:44 AM

Thanksgiving travel...

Travelers wearing protective masks use kiosks to check-in at the American Airlines Group Inc. counter at San Francisco International Airport (SFO) in San Francisco, California, U.S., on Wednesday, July 1, 2020. (Photographer: David Paul Morris/Bloomberg via Getty Images)

(Photographer: David Paul Morris/Bloomberg via Getty Images)

(CNN) — American Airlines says it will lay off or involuntarily furlough 19,000 employees as of October 1 unless the airline industry gets more help from Congress.

The world’s largest airline, which had 133,700 employees heading into this year, says it will need to reduce headcount by “at least” 40,000 employees. It said that 12,500 had agreed to leave the company with early retirement or buyout packages, and another 11,000 had agreed to voluntary furloughs for October.

“Even with those 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 [federal help],” said the letter that American CEO Doug Parker and President Robert Isom sent to employees. American said layoff notices were sent out Tuesday to 17,500 employees

Under terms of the CARES Act, which provided up to $50 billion of help to the US airline industry, airlines could not lay off or involuntarily furlough staff until October 1.

“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,” said the letter.

“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,” they added.

The airline also announced last week it would suspend service to 15 US smaller markets in October as a cost-cutting move. Cutting service to cities it had served is another measure that the CARES Act prohibited before October.

The airline industry and its unions are pushing for an extension of the help, but it is tied up with the discussion of other economic aid packages being considered, including enhanced unemployment benefits and help for state and local governments.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Cookie Monster has taken to X to express his frustration over shrinking products, aka: "shrinkflati...

Bryan Mena

Even Cookie Monster is complaining about the US economy

“Me hate shrinkflation! Me cookies are getting smaller,” Cookie Monster posted on X. “Guess me going to have to eat double da cookies!”

8 hours ago

Thousands of pounds of Trader Joe's chicken soup dumplings have been recalled due to possible conta...

Jamie Gumbrecht, CNN

Trader Joe’s chicken soup dumplings recalled for possible contamination

The manufacturer, CJ Foods Manufacturing Beaumont Corporation, said customers found hard plastic in the dumplings. 

9 hours ago

JetBlue Airways is pulling out of its deal to purchase Spirit Airlines. United and Spirit airlines ...

Chris Isidore, CNN

JetBlue pulls out of deal to buy Spirit Airlines

JetBlue agreed to pay Spirit $69 million as part of its decision to end the deal, JetBlue said.

17 hours ago

Lake Powell as seen from Navajo Mountain. The Navajo Nation is asking why their request for funding...

Eric Cabrera

Navajo Nation left wondering why funding continually denied

The Navajo Nation is asking why their request for funding for a road has been denied for the last 15 years.

4 days ago

Now hiring sign...

PAUL WISEMAN AP Economics Writer

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate

Far from stumbling, the economy grew 2.5% for all of 2023, topping the 1.9% growth in 2022.

4 days ago

baby feet, utah postpartum retreat helps new moms...

Britt Johnson

Utah company aims to help postpartum moms with special retreats

The founder of Utah Postpartum Retreat said she thinks new moms are at high risk for developing postpartum mood disorders because they lack support.

4 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

American Airlines will lay off 19,000 workers if it doesn’t get additional federal help