A few weeks after the first significant coronavirus outbreaks in the US, the air travel of that country plunged 95 percent by April 2020. As an impact, American Airlines will eliminate 19,000 jobs in October.
On Tuesday, the United States government said it extends its financial lifeline to US carriers that are struggling with a sharp drop in travel demand and passenger numbers during the coronavirus pandemic.
As cited by News24xx.com, at least 8,100 of flight attendants will be losing their jobs. And also 23,500 employees will retire early or took long-term leaves of absence.
For information, American began the year with about 140,000 employees but expects fewer than 100,000 to remain in October.
American’s announcement comes after Delta Air Lines said it will furlough 1,941 pilots in October 2020. But if it reaches a cost-cutting deal with the pilots’ union, it can’t happen.
The airline industry was the only one to get special treatment in a $2.2 trillion virus-relief measure approved in March. In March 2020, passenger airlines got USD 25bn from the government to save jobs for six months, and American was the biggest beneficiary, receiving USD 5.8 billion.
In the fourth quarter, American plans to fly less than half its usual schedule and only one-fourth of its lucrative international service.
The airline, based in Fort Worth, Texas, announced last week that it will pull out of 15 smaller US cities in October.