An airline employee passes through the empty terminals of American Airlines at Washington’s Ronald Reagan National Airport in Arlington, Virginia, on May 12, 2020.
ANDREW CABALLERO-REYNOLDS
American Airlines on Wednesday warned some 25,000 front-line employees, about 20% of its workforce, of possible licenses, the latest airline to prepare staff for job cuts as waves of coronavirus cases precipitate the hope for a rapid rebound in travel demand.
The airline also urged employees to take new extended licenses that can last up to two years or early retirement packages to remove as many people from the payroll as possible before having to involuntarily cut their jobs.
American’s revenue in June decreased more than 80% from a year ago, CEO Doug Parker and President Robert Isom said in a note to staff.
“And with increasing infection rates and several states reestablishing quarantine restrictions, demand for air travel is slowing down again,” they wrote.
Airlines are prohibited from cutting jobs or paying worker fees until September 30 under terms of $ 25 billion in support of federal payroll.
The Worker Adjustment and Recycling Notification Act requires employers to notify staff of possible layoffs or temporary leave generally 60 days in advance. Workers said their jobs are at risk will not necessarily be laid off.
WARN notices will go to 37% of American Airlines flight attendants, or 9,950 people and 2,500 of its pilots, or 18%, 3,200 maintenance workers and 4,500 fleet service employees.
American, based in Fort Worth, Texas, said earlier this month that it has about 20,000 more employees than it needs for its reduced fall schedule. CNBC reported earlier this week that the announcements were yet to come.
Last week, United told nearly 36,000 employees (nearly 40% of its workforce ) that they could be laid off and Southwest Airlines told staff the airline needs to triple the number of passengers by the end of the year to avoid layoffs. or licenses.
American Airlines shares fell more than 1% in post-trade.
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