American Airlines said Tuesday it will eliminate 19,000 jobs in October as it struggles with a sharp downturn in travel because of the pandemic. Flight attendants will bear the heaviest cuts, with 8,100 losing their jobs. The furloughs and management layoffs announced Tuesday are in addition to 23,500 employees who accepted buyouts, retired early, or took long-term leaves of absence, the AP reports. American began the year with about 140,000 employees but expects fewer than 100,000 to remain in October. US air travel plunged 95% by April. Passenger traffic has recovered slightly since then but remains down 70% from a year ago, and carriers say they need fewer workers. American’s announcement comes one day after Delta Air Lines said it will furlough 1,941 pilots in October unless it reaches a cost-cutting deal with the pilots’ union.
In March, passenger airlines got $25 billion from the government to save jobs for six months, and American was the biggest beneficiary, receiving $5.8 billion. The money, and an accompanying ban on furloughs, expire after Sept. 30, although airlines and their labor unions are lobbying Congress for another $25 billion and a six-month reprieve from job cuts. When the federal relief was approved, "it was assumed that by Sept. 30, the virus would be under control and demand for air travel would have returned. That is obviously not the case," American CEO Doug Parker and President Robert Isom said in a letter to employees on Tuesday. They said the "involuntary reductions" could be avoided if federal aid is extended.
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