American Airlines will furlough 19000 employees starting October 1st.
This is a result of US officials failing to close a deal on fresh aid.
US carriers that were fortunate to get billions in aid from Congress refrained from furloughing workers until the end of September.
Thus, thousands of lay offs are expected to happen this month.
American Airlines Will Begin Furloughing 19000 Employees
American Airlines CEO Doug Parker said on a letter last Wednesday:
“Our elected officials have not been able to reach agreement on a Covid-19 relief package… As a result, tomorrow, we will begin the difficult process of furloughing 19,000 of our hardworking and dedicated colleagues.
However, this could still be prevented if lawmakers could forge a deal for new assistance.
If so, the expected furloughs will be cancelled and the workers affected will be recalled.
US Airlines grounded their planes and delayed jet deliveries to minimize operational costs.
Additionally, revenue from flights is only one-third compared to last year’s.
Moreover, thousands of employees were forced to accept unpaid leaves and early retirement packages to help avoid untimely terminations.
However, despite of all these measures, job cuts will happen.
Full recovery in travel tourism and air travel isn’t expected before a vaccine becomes available worldwide.
This isn’t expected until the last quarter of 2021.
More than 100,000 people could be furloughed by then if there’s no further federal aid.
All we can do is hope for a new agreement for relief packages so our friends and colleagues could be spared from these never-ending furloughs.
Photo Credit: Steve