Sunday, 07 March, 2021


American Airlines recent furlough, layoff may impact Tulsa base

American Airlines announces job cuts American Airlines announces job cuts
Conrad Doyle | 26 August, 2020, 21:57

Patrick T. Fallon/Bloomberg American Airlines planes at O'Hare International Airport (ORD) in Chicago.

American Airlines announced they will furlough or layoff about 19,000 employees in October, as they struggle with lower passenger rates during the coronavirus pandemic.

Delta Air Lines plans to furlough 1,941 of its pilots in October if the company can't reach a cost-cutting agreement with the employees' labor union, the airline said Monday. American is the first major carrier to disclose the extent of shrinking operations to adjust to passenger numbers that are down 70 per cent from past year.

Airlines received $25billion in USA government stimulus funds in March meant to cover payrolls and protect jobs through September.

American's cuts include jobs at affiliates that operate American Eagle regional flights.

"We have come to you many times throughout the pandemic, often with sobering updates on a world none of us could have imagined", American Airlines CEO Doug Parker wrote with President Robert Isom to company staff, according to CNBC. "Today is the hardest message we have had to share".

American fell 3.6 per cent to $12.96 at 11.28 am in NY, a day after airlines rallied on upbeat expectations for coronavirus treatments and vaccines. American has tumbled 54% this year, with only United Airlines Holdings Inc. declining more on a Standard & Poor's index of major USA carriers.

Based on current demand, American plans to fly less than 50 per cent of its normal schedule in the fourth quarter, with long-haul worldwide at only 25 per cent of 2019 levels, Mr Parker and Mr Isom said. "We see the dark consequences". Worldwide flights are expected to be reduced to 25% of 2019 levels. The remaining 1,500 job cuts will affect the management team.

But there were still roughly 11,200 active pilots on Delta's roster, Laughter said, with only about 9,450 needed for the summer 2021 schedule, which the carrier expects will be the peak flying period for the next 12-18 months. The number of pilots will fall 23%.

"The one possibility of avoiding these involuntary reductions on October 1 is a clean extension" of the payroll relief, Parker and Isom said in their letter to employees. This number could include workers in the tech ops division at its Tulsa maintenance base, which employs more than 5,000 technicians.

This summer, Delta warned 2,558 of its pilots about potential furloughs.

The announcement comes just five days before the scheduled expiration of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and with it the legislation's Payroll Support Program (PSP), which included involuntary layoff protections for employees of any airline that accepted part of a $25 billion grant package.

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