American Airlines Warns Of Nearly 13,000 Furloughs From April 1st
 
2/4/2021
 

American Airlines today announced that it expects up to over 12,000 furloughs from April 1st. In a letter to its staff, the airline detailed that the airline business environment remains difficult. The airline is no longer looking at a summer schedule where it would need all of its employees back. American, however, is supportive of union efforts to extend payroll support funding through September 30th.

The environment is still difficult for American Airlines

In a letter to its employees, American Airlines detailed a difficult state of the business. The airline said 2021 had not brought the hope and optimism of a better travel environment thus far.

Looking ahead to the summer, the airline previously believed it would be flying a hefty schedule and need the “full strength of our team.” Unfortunately, the airline detailed it does not believe that is the case anymore.

One reason the airline believes it will not need to fly its full breadth of schedules is the slow rollout of the vaccine. A second added pressure is the requirement for international travelers to present proof of a negative test for entry into the US. This last part, according to American, has dampened demand.

American will be overstaffed in April

The extension of the Payroll Support Program (PSP) in late-December required airlines to bring back furloughed employees to the payroll and pay employee salaries and benefits for all through the end of March with no involuntary furloughs or layoffs.

However, with that round of funding ending on March 31st, American Airlines believes it will be overstaffed on April 1st.

Starting on Friday, the airline will begin issuing Worker Adjustment and Retraining Notification (WARN) notices to around 13,000 team members.

byJay Singh

 
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