American Airlines warns 13,000 employees of potential objects

American Airlines has issued a warning to about 13,000 employees that potential plans may come, as travel demand continues to be suppressed due to the ongoing impact of the coronavirus pandemic.

“We are almost five weeks into 2021, and unfortunately we find ourselves in a similar situation to many of 2020,” Doug Parker, CEO of American Airlines, and President Robert Isom wrote in a memorandum to employees on Wednesday. As we concluded last year with the successful expansion of the Payroll Support Program (PSP), we believed we would look at a summer schedule where we would fly all our aircraft and require the full strength of our team. Unfortunately, this is no longer the case. The vaccine is not spreading as fast as one of us believed, and new restrictions on international travel requiring customers to undergo a negative COVID-19 test have dampened demand. ‘

According to the memorandum, the airline will begin issuing employee adaptation and retraining (WARN) notices on Friday. Although WARN notices are usually required by law 60 days in advance, the notices do not guarantee that notified workers will lose their jobs.

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American estimates that it will fly at least 45 percent less in the first quarter compared to the same period in 2019, and based on current demand prospects, not all of its aircraft will fly as originally planned.

“Obviously this is not where we want to be, and we will work with union leaders to do everything in our power to reduce the impact of the work as much as possible,” the managers added.

The Americans captured 19,000 workers after the first round of government wage support expired on October 1, but recalled them in December, after approving an additional $ 15 billion from Congress. The new round of federal aid requires airlines to keep recalled employees on payroll until March 31st.

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However, airline unions are now seeking additional $ 15 billion in federal aid to support the industry until September 30.

“We fully support our union leaders’ efforts to fight for an extension, and we will lend our time and energy to support this effort in every way possible,” Parker and Isom said. “Our country’s leaders understand the important role that airline workers play in keeping the country going. They showed their support last year and we will encourage them to do the same again if the pandemic continues around the world.”

In addition, American plans to open a voluntary early program and a long-term voluntary absence program for its U.S. employees in the U.S. on Friday, excluding pilots.

Employees with ten or more years of workgroup work will be awarded up to $ 150,000 in a package to reimburse the health of retirees and some travel benefits. Employees with less than ten years of workgroup businesses will still receive active medical coverage and some travel benefits. Meanwhile, employees opting for the extended leave program will be offered a year or 18 months of continued medical coverage at active rates, as well as travel benefits and partial payment.

“The issuance of these required WARN notices is obviously not a step we want to take. Tens of thousands of our colleagues have had tremendous uncertainty over their job security over the past twelve months, and it is on top of that the emotional strain our entire team has in an incredibly difficult year, “the managers added.” Please know that we will get through this period and move to a more stable ground – that’s for sure. And we will continue to fight in every possible way to get there as soon as possible. Until demand returns and we can provide permanent job stability, we owe you transparency. This is what we can offer today and what we will continue to offer. Thank you for everything you do for each other, our customers and our airline. “

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According to a poll reviewed by Reuters, Parker announced the first warning last week during the January 28 city hall event. According to the outlet, Rival United Airlines also made a similar announcement, telling employees that notices would be sent to about 14,000 employees.

The move comes after a slower-than-expected fourth-quarter loss of $ 2.18 billion, or $ 3.81 per share, last week. American’s total operating revenue fell from $ 11.31 billion to $ 4.03 billion, but Wall Street expectations of $ 3.88 billion. The airline also reported an annual loss of $ 8.9 billion, which is the largest.