American Air sees 19,000 job cuts once US payroll aid ends

AMERICAN Airlines Group Inc will cut 19,000 workers once federal payroll aid expires on Oct 1, capping a 30 per cent workforce reduction since the Covid-19 pandemic began to torpedo travel demand.

About 17,500 employees will be furloughed, meaning they are eligible to be called back when conditions improve, and 1,500 previously announced cuts to management staff will take effect, the airline said on Tuesday.

American is the first major carrier to disclose how much it will shrink operations as it adjusts to passenger numbers that are down 70 per cent from last year. American's plan, bringing its total pandemic cuts to 40,000 positions, heralds thousands more job losses at US airlines after the Sept 30 expiration of protections tied to federal financial aid. Debate has stalled in Congress over a six-month extension of the government's US$25 billion in payroll support for airlines, which would carry the same restrictions on workforce cuts. A new round of assistance would avert involuntary job cuts, American said.