American Airlines may have to lay off 13,000 employees. The Airline is not hopeful about air travel picking up or business recovering any time soon. Over 4,000 flight attendants, more than 1,000 pilots, and at least 3,000 fleet service workers are among those whose jobs are at risk.
Not even 40 per cent of domestic travellers are flying as compared to their 2019 numbers. The Airline was initially hopeful that all of its planes will be put to service in the summer, but the chances of that happening seem dim now. That is why, it has to resort to reducing its team size.
The slow distribution of the COVID vaccine has only further dashed hopes. To add to that, new rules and restrictions have been introduced making it mandatory for flyers to produce a negative COVID-19 test report.
The stocks of the American Airlines have dipped 35 per cent in the last one year. The only chance of avoiding furloughs will come if an unexpected and miraculous recovery in business takes place suddenly or if the Government offers a third round of financial assistance.
American Airlines will begin sending Worker Adjustment and Retraining Notification (WARN) notices on Febuary 5.
The Airline had furloughed about 19,000 employees when the first round of governmental support had expired on October. However, when an additional $15 billion was offered as support by the Congress, these employees were recalled.