August 26. 2020

This week American Airlines announced its plans to layoff 19,000 workers and an additional 21,200 to "cut its workforce by at least 40,000 employees." The layoffs will occur by October 1, 2020 if Congress does not bail them out. American has already laid off thousands of workers. This week Delta Airlines also made an announcement regarding layoffs. Delta stated they will layoff 2,000 pilots and potentially additional staff members.

The layoffs in the American Airline industry are occurring due to the coronavirus (Covid-19) severely damaging the U.S. economy. Despite the fact Congress has given the airlines stimulus money in the form of PPP funds, they are running out of cash already, as people are not flying as they used to, scared of contracting the coronavirus in airport and airplane settings.

STORY SOURCE

American Airlines to cut 19,000 workers, Delta 1,900 pilots by October

Aug. 25 (UPI) -- American Airlines said Tuesday it will cut 19,000 workers in October when federal protections to prevent layoffs end because of the coronavirus and its continuing impact on the travel industry. The announcement comes after Delta Air Lines said it will furlough nearly 2,000 pilots at the same time unless they win concessions from the union.

American Airlines received $25 billion in federal aid in March, which prevented it from slashing its payroll through Sept. 30. Travel demand, though, has not recovered to pre-pandemic levels, leaving airlines with harsh economic scenarios...