American Airlines warned it would send furlough notices this week to about 13,000 employees, according to CNBC. The airline announcement comes when the second round of federal aid is expected to expire next month, and travel demand remains uncertain.
- American Airlines CEO Doug Parker and President Robert Isom see dampened international travel demand on slow vaccine distribution and new coronavirus restrictions.
- The layoffs affect 4,245 flight attendants, 3,145 fleet service workers, 1,850 pilots, 1,420 maintenance workers, 1,205 in passenger service, 100 dispatchers, and 40 instructors.
- American Airlines is offering early retirement programs for employees who have been in their workgroups for more than ten years, including up to $150,000 in a retirement health reimbursement package and some travel benefits.
- The airline is also rolling out leaves of absence for a year or 18 months with partial pay.
- American Airlines is the only large U.S carrier to furlough pilots as United, Delta, and others reached deals with unions for some reduced flying or pay.
- The Allied Pilots Association, American Airlines pilots’ union, have criticized the airline’s decisions and the fact that it did not use voluntary measures to spread out flying to limit job cuts.
- Airline labor unions are now seeking $15 billion more in federal payroll support for the industry to keep jobs through September 30.
American Airlines stock is currently declining. AAL: NASDAQ is down 0.45%