American Airlines will lay off 19,000 workers if it doesn’t get additional federal help

“Even with those sacrifices, approximately 19,000 of our team members will be involuntarily furloughed or separated from the company on October 1, unless there is an extension of the [federal help],” stated the letter that American CEO Doug Parker and President Robert Isom despatched to staff. American stated layoff notices have been despatched out Tuesday to 17,500 staff

“The only problem with the legislation is that when it was enacted in March, it was assumed that by September 30, the virus would be under control and demand for air travel would have returned,” stated the letter.

“That is obviously not the case. Based on current demand levels, we at American now plan to fly less than 50% of our airline in the fourth quarter, with long-haul international particularly reduced to only 25% of 2019 levels,” they added.

The airline additionally introduced final week it would droop service to 15 US smaller markets in October as a cost-cutting transfer. Cutting service to cities it had served is one other measure that the CARES Act prohibited earlier than October.

The airline business and its unions are pushing for an extension of the help, however it is tied up with the dialogue of different financial support packages being thought of, together with enhanced unemployment advantages and help for state and native governments.