American Airlines to furlough up to 13,000 employees

New York: American Airlines will send furlough notices to roughly 13,000 employees as federal aid is set to expire next month, the company announced on February 3.

This includes 1,850 pilots, 4,245 flight attendants, 1,420 maintenance workers, 3,145 fleet service workers, 1,205 passenger service workers, 100 dispatch workers, and 40 flight crew training instructors and simulator pilot instructors.

The airline's announcement came just days after United said it might have to lay off up to 14,000 employees. It also comes six months after American Airlines announced it would be cutting 19,000 jobs due to decreased air travel amid the COVID-19 pandemic.

In 2020, due to the global health crisis, American Airlines lost USD 8.9 billion after earning nearly USD 1.7 billion in 2019.

In an 8-K filing, American Airlines said it originally believed it would be able to fly all of its aircraft by this summer, but because COVID-19 vaccine distribution is taking longer than expected, demand will remain much lower than anticipated.

The airline also blames a required negative coronavirus test for inbound international passengers for hindered demand.

Union leaders are lobbying Congress for USD 15 billion to extend the Payroll Support Program through September.

While furlough notices will go out to 13,000 workers, that does not mean that 13,000 will be let go; American Airlines is also offering early out packages to those who qualify.