American Airlines has warned 25,000 workers that they could be dismissed from October 1 as the coronavirus pandemic is taking on the airline industry.
According to the details, American Airlines has notified 25,000 workers, nearly 20% of the company’s workforce of 130,000, including 9,950 flight attendants and 2,500 pilots.
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In a memo to the employees, Chief Executive Officer (CEO) Doug Parker and President Robert Isom, said that the airline will have more than 20,000 excess workers on payroll due to a profound downturn in business caused by the coronavirus pandemic.
“With infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again,” they added.
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United States (US) carriers that received government aid under the Coronavirus Aid, Relief, and Economic Security (CARES) Act cannot lay off workers until after Sept 30.
Global airlines will suffer a record net loss of $84.3 billion this year, more than double the $31 bn in loss incurred during the 2008-2009 global financial crisis, according to International Air Transport Association (IATA).
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