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| American Airlines cuts 19,000 jobs amid travel slump | |
| (32 minutes later) | |
| American Airlines has said it will cut 19,000 jobs in October when a government wage support scheme extended to airlines during the pandemic comes to an end. | |
| The world's biggest airline said the cuts, on top of voluntary departures and leave, would leave its workforce 30% smaller than it was in March. | The world's biggest airline said the cuts, on top of voluntary departures and leave, would leave its workforce 30% smaller than it was in March. |
| Other carriers have warned of similarly large cuts amid a slump in air travel. | Other carriers have warned of similarly large cuts amid a slump in air travel. |
| United last month said as many as 36,000 jobs were at risk. | United last month said as many as 36,000 jobs were at risk. |
| Germany's Lufthansa has warned it may cut 22,000 positions, while British Airways is slashing 12,000 jobs. | Germany's Lufthansa has warned it may cut 22,000 positions, while British Airways is slashing 12,000 jobs. |
| The reductions come amid warnings that the impact of the pandemic will cause airline losses of more than $84bn (£64bn) globally this year. | The reductions come amid warnings that the impact of the pandemic will cause airline losses of more than $84bn (£64bn) globally this year. |
| In the US, the terms of a $25bn (£19bn) government bailout barred airlines from making significant job cuts before 30 September. While airlines have called for further support, talks in Washington about an aid package collapsed this month without a deal. | In the US, the terms of a $25bn (£19bn) government bailout barred airlines from making significant job cuts before 30 September. While airlines have called for further support, talks in Washington about an aid package collapsed this month without a deal. |
| American had received $5.8bn from the payroll aid programme. It recently announced plans to suspend service to 15 smaller airports in the US due to low travel demand. | American had received $5.8bn from the payroll aid programme. It recently announced plans to suspend service to 15 smaller airports in the US due to low travel demand. |
| "We must prepare for the possibility that our nation's leadership will not be able to find a way to further support aviation professionals and the service we provide, especially to smaller communities," chief executive Doug Parker and president Robert Isom said in a message to staff. | "We must prepare for the possibility that our nation's leadership will not be able to find a way to further support aviation professionals and the service we provide, especially to smaller communities," chief executive Doug Parker and president Robert Isom said in a message to staff. |
| In the letter, executives said they expected American to be flying at about 50% capacity in the final three months of 2020. International flights are expected to be reduced to 25% of 2019 levels. | In the letter, executives said they expected American to be flying at about 50% capacity in the final three months of 2020. International flights are expected to be reduced to 25% of 2019 levels. |
| American said it expected fewer than 100,000 people to be working in October, down from 140,000 at the beginning of March. | American said it expected fewer than 100,000 people to be working in October, down from 140,000 at the beginning of March. |
| In addition to the 19,000 cuts, about 12,500 people have voluntarily left the airline since March. Another 11,000 will be on voluntary leave in October. | In addition to the 19,000 cuts, about 12,500 people have voluntarily left the airline since March. Another 11,000 will be on voluntary leave in October. |