Globally now we meet the massive economic crisis that many giant companies start to lay off many of their employees to reduce their cost in this uncertain future and hard to expect sharp rebouding.
American Airlines will fly less than 50% of its normal schedule in the fourth quarter. International flights will be reduced to only 25% of last-year levels.
The coronavirus pandemic has seriously undermined many industries this year. It seemed the world won the battle against the virus, however, COVID-19 is spreading again and weighs on air travel that was the first to suffer during the first wave as well. Amid another sharp downturn in traveling, American Airlines Inc (NASDAQ: AAL) said on October 1 it would lay off 19,000 jobs. But if the government extends aid for airline employee payrolls that expires in October, the company will not slash these jobs.
At the beginning of 2020, American Airlines had 133,700 employees. During the first coronavirus wave, it had to significantly reduce its headcount. Now, the company is planning to furlough another 40,000 workers. In July, American Airlines warned it might furlough up to 25,000 jobs. 12,500 have already agreed to leave with early retirement or buyout packages. Another 11,000 agreed to voluntary furloughs for October.
Other largest carriers have made a similar announcement regarding their staff policy in the pandemic. For example, United Airlines Holdings Inc said it could reduce its headcount by 38% (36,000 employees). Delta Air Lines Inc has warned of possible furlough of 1,941 pilots on October 1.
Posted Using LeoFinance