American Airlines and United Airlines plan to furlough a combined 32,000 workers starting Thursday, when federal aid expires.
“I am extremely sorry we have reached this outcome,” the American Air CEO said in a letter to employees. “It is not what you all deserve.”
Both airlines said they would reverse course if lawmakers and the Trump administration reach a deal for a new coronavirus stimulus that includes more airline payroll support.
The terms of $25 billion in federal payroll support Congress passed for the ailing sector in March prohibit airlines from cutting jobs until Oct. 1. The aid was meant to help airlines cope with a sharp drop in bookings until there was a significant recovery in demand, which hasn’t materialized.
Airlines spent the last several months urging lawmakers for another $25 billion in payroll support, a proposal that has won bipartisan support. That would have preserved jobs through the end of March, despite weak travel demand.
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