American Airlines to cut at least 40000 jobs in October. It includes 19000 through furloughs and layoffs, Kens5 reported. According to the reports, the job cut can only be avoided if the federal government gives the airlines another $25bn to cover the labor cost and save the jobs for another six months.
The Federal Government has already issued $25bn till September 30 to save jobs. American Airlines received a whopping $5.8bn. The Airlines believed that the pandemic would settle down by September 30 back then. However, considering the current situation, the Airlines has no other option than to cut jobs.
The Airlines started the year with 140,000 employees, however, it may end up with fewer 100,000 employees by October. The airlines said that 23500 people have already opted for buyouts, many have retired early or taken a long absence. However, that is not enough to save the situation. The airline industry has plunged by 95% in April due to the spread of COVID19. The situation has improved a bit, but it is still down by 70% from last year.
The flight attendants would be the hardest hit, and it is expected that at least 8100 may face the layoff. For domestic air travel, the schedule is half than the previous year and one fourth for international travel.
The airline industry received special treatment in the $2.2tn relief package announced by the White House. The extension of the deal is very much on the cards but it is reportedly stalled due to negotiation between White House and Congressional Democrats.
Previously, Delta Airlines announced that it would furlough 1941 pilots in October. United Airlines has also warned the employees that at least 36000 employees may lose their jobs in October. Delta has however proposed 15% cuts in the minimum guaranteed to pay for the pilots. The Air Line Pilot association has however accused Delta of threatening them with the furlough for granting concessions.