‘A day none of us wanted to see’: American Airlines warns employees of up to 25,000 job cuts

Dawn Gilbertson, USA TODAY Published 6:38 p.m. ET July 15, 2020 CLOSE The DOT warning comes as travelers have blasted United and other airlines skirting its policies on cash refunds for canceled flights. USA TODAYAmerican Airlines executives warned employees late Wednesday that the airline will have to lay off as many as 25,000 front-line workers this…

‘A day none of us wanted to see’: American Airlines warns employees of up to 25,000 job cuts

Dawn Gilbertson, USA TODAY
Published 6:38 p.m. ET July 15, 2020
CLOSE

The DOT warning comes as travelers have blasted United and other airlines skirting its policies on cash refunds for canceled flights.

USA TODAYAmerican Airlines executives warned employees late Wednesday that the airline will have to lay off as many as 25,000 front-line workers this fall because travel has not rebounded from the coronavirus crisis as they had hoped.The job cuts, which cover unionized employees including pilots, flight attendants, mechanics and airport workers, represent nearly 30% of the company’s 85,000 front-line workers in its U.S. mainline operation. American previously cut 30% of its corporate staff, or 5,000 employees.In a memo to employees, American CEO Doug Parker and President Robert Isom said the goal when the payroll protection provisions of the federal CARES Act were signed in March was to buy time for travel to rebound so no layoffs were needed when the program ends Oct. 1.”That unfortunately has not been the case,” they said.American’s revenue in June was 80% lower than June 2019, the executives said, and travel demand is slowing again after an uptick, due to a spike in COVID-19 infections and new t
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