The airline industry was among the hardest hit amid the coronavirus pandemic and American Airlines warned Wednesday that the fight is far from over.
American Airlines said it will notify 25,000 employees of potential furloughs on October 1 as travel demand remains extremely weak. The move would impact 29% of American’s total workforce and would include around 10,000 flight attendants and 2,500 pilots.
In a memo from CEO Doug Parker and President Rob Isom, American said it hopes to avoid some of the furloughs via extended leaves and early retirement packages.
The American Airlines executives also supported union efforts to prompt Washington for an extension of federal aid to airlines past March 21.
Around $32 billion in federal aid has been reserved to protect airline jobs so far. American was one of the recipients of the Cares Act, which prohibited employers from cutting positions through September 30.
Based off of the number of people passing through Transportation Security Administration checkpoints for the first weeks of July, the number of travelers was down 73% from the same period last year.
“And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again,” Parker and Isom wrote.
The executives said American’s June revenue was down more than 80% year over year.
American’s announcement follows similar news from United Airlines and Southwest.
In other American news, the company announced a partnership with JetBlue to increase flights in the Northeast and codeshare.
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