Blames Increased Coronavirus Infections For Continuing Air Travel Declines

Once believing that air travel activity would mostly recover before the end of CARES Act funding ran out, American Airlines has changed its tune, and says it no longer feels that to be so.

 As a result, it has notified some 25,000 employees of the potential for furloughs. CARES Act money has kept much of the airline industry somewhat solvent to this point, but the gravy train couldn't last forever, and American Airlines seems to be firing a shot across the bow in order to both warn its staffers, as well as to lobby Washington for more recovery dollars to prevent the specter of more layoffs.

While receiving our tax dollars, the airlines had to pretty much keep their staffing levels intact through the end of the CARES Act funding timetable. AA CEO Doug Parker and President Robert Isom have now issued a letter to employees complaining that the hopes for air travel recovery had dimmed as COVID-19 infection rates increased in a number of critical states.

The letter reportedly states that, "From the time the CARES Act was signed in March, we had a stated goal of avoiding furloughs because we believed demand for air travel would steadily rebound by Oct. 1 as the impact of COVID-19 dissipated... That unfortunately has not been the case."

Worker Adjustment and Retraining Notification Act notices, otherwise known as 'WARN' letters, are expected to go out this week. Claiming over 20000 surplus employees, AA has indicated that as many as 2500 pilots and nearly 10000 flight attendants may be affected — more than originally stated as being at risk. Adding to that, AA notes that some 3,200 maintenance staffers, 4,500 fleet service personnel, 2,900 passenger service agents, and 1,000 reservations workers may be on the chopping block.

FMI: www.aa.com