Regrettably, we could witness a wave of layoffs and furloughs taking place in the US in the coming months unless some miracle happens.
American Airlines executives announced that the company may have to furlough 25,000 front-line workers, which include around 10,000 flight attendants and 2,500 pilots, starting October because air travel has not recovered from the coronavirus crisis as hoped.
CEO Doug Parker and President Robert Isom, mentioned in a memo that the airline still hopes to avoid some of these furloughs by issuing voluntary leave and early-out programs
“We hope to reduce the actual number of furloughs significantly through enhanced leave and early-out programs for represented workgroups, which we are announcing today.”
October 1 is when the prohibition of layoffs, involuntary furloughs or pay cuts for employees, which was part of the federal bailout agreement, will be lifted.
The executives had to face and adjust to what’s coming.
“We know American will be smaller going forward and we must right-size all aspects of our airline to adjust to that new reality.”
Because of the spike in COVID-19 infections and new travel restrictions demand for travel is slowing again dashing all hopes of a quick recovery.
Flight attendants of American Airlines face the biggest cuts, with notices going out to nearly 37% of the company’s flight attendants.
Similarly, United Airlines also warned recently that 45% of its frontline workforce could be furloughed this fall. That’s 36,000 workers who will receive layoff notices.
Ultimately, we are hit with the fact that government bailouts could only so much as to buy us time until the pandemic is put under control.
The grim truth is that we aren’t anywhere near winning the fight against this virus.
Unless a vaccine or a cure turns up, air travel will continue its decline and airlines will have to shrink.
Stay strong everyone.
Start looking for alternatives just in case.
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