American Airlines Will Cut 19,000 Jobs In October As Coronavirus Decimates Travel Industry

American Airlines will cut 19,000 jobs in October after the corporate aid provided by the CARES Act runs out, the latest sign of major distress from an industry that is facing years of hardship because of the coronavirus pandemic.Washington National Airport in Arlington, Virginia, on May 12, 2020.furloughs could be comingAmerican was one of ten airlines that received a cumulative $25 billion bailout as part of the $2.2 trillion CARES Act.

That bailout came with several crucial conditions: the airlines agreed that they would keep on 90% of their staff through September, suspend stock buybacks and dividend payments, and limit executive pay for the next two years. Earlier this week, American also announced that it would be suspending service to 15 small cities in October, also in anticipation of the federal money running out.

American’s leadership noted Tuesday that the “one possibility” of avoiding the layoffs is an extension of the federal aid program. Stimulus aid negotiations in Washington have slowed to a standstill, however, and it’s not clear whether that will happen despite strong bipartisan support from lawmakers. “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 wrote in a Tuesday letter to employees. American Airlines isn’t the only company making cuts to stay afloat during the pandemic.

theothersarahh Trump's economy.

theothersarahh Close loopholes that allow hiding money offshore implement exit tax on amounts over $25 million and create a basic income for under $35k earners. Rather than giving the rich money gove it to consumers ho will spend in local businesses

theothersarahh Because Trump has open up tons of hundreds of tons of jobs in other sectors, and he wants them to go and working other capacities. Haha 🤣 that's their spin on this. RIGHT!

theothersarahh Right when the 6 month stipulation in the PPP funding ends. Fun right?

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American Airlines Will Cut 19,000 Jobs In October As Coronavirus Decimates Travel IndustryIt’s not clear if there will be any more federal stimulus money for airlines from Washington. 😬😬😬😬 No more money to airlines. Congress can't get money to people who also involuntarily lost their jobs & wages. I'm in a travel/tourism based industry, & we aren't expected to return until the middle of next year. If AA has to do it, then they have to do it. Reality check. Please cover the Qatar airways story too please. Same thing is happening but worse conditions.
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American Airlines to furlough, layoff 19,000 workers due to coronavirus - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Curious what's going on in aviation? What impact did COVID19 have? Why has WarrenBuffett sold all his airline stocks? Details in my video!!! 👇 They keep kicking people off with small and special needs children. Since 40% of the country can now work remotely, some permanently like us, we can drive stateside. Gas is cheaper, free luggage, and great scenery save us a lot of airport inconvenience.
Source: BusinessInsider - 🏆 729. / 51 Read more »