“Even with those sacrifices, approximately 19,000 of our team members will be involuntarily furloughed or separated from the company on October 1, unless there is an extension of the [federal help],” said the letter that American CEO Doug Parker and President Robert Isom sent to employees. American said layoff notices were sent out Tuesday to 17,500 employees
“The only problem with the legislation is that when it was enacted in March, it was assumed that by September 30, the virus would be under control and demand for air travel would have returned,” said the letter.
“That is obviously not the case. Based on current demand levels, we at American now plan to fly less than 50% of our airline in the fourth quarter, with long-haul international particularly reduced to only 25% of 2019 levels,” they added.
The airline industry and its unions are pushing for an extension of the help, but it is tied up with the discussion of other economic aid packages being considered, including enhanced unemployment benefits and help for state and local governments.