American Airlines Warns Thousands of Employees about Potential Job Slashes

As the coronavirus pandemic continues to surge through the nation, airline company American Airlines has warned 25,000 of its employees about potential job cuts.

The airline has told its employees this month that it is expecting to be overstaffed by over 20,000 people this fall. CNBC reported earlier this week that the notices were forthcoming.

Under the terms of the $25 billion in federal payroll support, airlines have been prohibited from laying off any workers until October 1st.

Furloughing 25,000 jobs would represent about 29% of the company’s mainline workforce in the U.S. Those who are told their jobs are at risk won’t necessarily be laid off.

The airline also urged employees to take new extended leaves that can last up to two years or early retirement packages to get as many people off payroll as possible before having to involuntarily slash their jobs.

In a note to staff, American Airlines CEO Doug Parker has said that revenue last month was down more than 80% compared to a year ago.

“And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again,” the note read.

The WARN notices regarding job cuts will go to 37% of American Airlines’ flight attendants, or 9,950 people and to 2,500 of its pilots, or 18%, 3,200 maintenance workers and 4,500 fleet service employees,
The Worker Adjustment and Retraining Notification Act requires employers to notify staff about possible layoffs or temporary furloughs generally 60 days in advance.

“This is brutal news,” said Dennis Tajer, spokesman for the Allied Pilots Association. According to Tajer, cuts to pilot ranks could hurt the airline’s chances of capitalizing on a rebound in demand “when we get on the other side of this crisis.”

Julie Hedrick, president of the Association of Professional Flight Attendants, is pushing for Congress and the Trump administration to extend payroll support “to help keep aviation front-line workers connected to their pay and benefits as we deal with reduced demand as a result of the pandemic.”

Disclaimer: We have no position in American Airlines Group Inc. (NASDAQ: AAL) and have not been compensated for this article.