American Airlines sends staff again notifications with low travel demand

An airport employee gestures on the tarmac while an American Airlines Airbus 220 aircraft is spotted at the gate at Washington National Airport (DCA) in Arlington, Virginia, on December 18, 2020.

Daniel Slim | AFP | Getty Images

American Airlines said on Wednesday that it would send further notices to about 13,000 employees this week, as a second round of federal payment assistance is expected to expire and demand for travel will remain shattered.

Rival United Airlines sent similar warnings to 14,000 staff members last Friday.

The latest $ 15 billion congress approved last year for U.S. transportation companies requires airlines to recall the employees they hampered in the fall and maintain salaries until March 31. This was the second round of Covid assistance to the industry; Congress gave the airlines $ 25 billion last March to prevent workers from being cut by the fall.

U.S. airline executives warned last month that they would not expect a strong setback in air travel in the near future, as they reported an annual loss of $ 34 billion.

Employers are legally required to notify staff 60 days in advance of possible dismissal or temporary plans. The notices do not guarantee that recipients will eventually lose their jobs.

U.S. CEO Doug Parker told staff last week that the carrier is still being overstaffed for current demand projections and that there may be plans.

“I do not want anyone to be surprised if the company issues WARN notices in the near future,” Parker said last week in a town hall with staff, the audio of which was reviewed by CNBC. He said the company would work with unions to reduce plans through voluntary measures.

Airline unions are now seeking $ 15 billion more in federal wage support for the industry to keep jobs until September 30.

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