American Airlines has announced plans to slash 19,000 jobs with effect from October 2020, just after the government wage support scheme to airlines comes to an end.
In addition to the 19,000 cuts, about 12,500 people have voluntarily left the airline since March. Another 11,000 will be on voluntary leave in October.
Under terms of the CARES Act, which provided up to $50 billion of help to the US airline industry, airlines could not lay off or involuntarily furlough staff until October 1.
The reductions come amid warnings that the impact of the pandemic will cause airline losses of more than $84bn globally this year.
The airline posted a $2.2 billion net loss in the first quarter of 2020, its first quarterly loss since emerging from bankruptcy in 2013. The loss is a shift from $185 million profit recorded in the same period last year.
American Airlines is the world’s largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile. American, together with its regional partners, operates an extensive international and domestic network with almost 6,800 flights per day to nearly 350 destinations in more than 50 countries.
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