American Airlines To Furlough 19K Thursday When Federal Payroll Support Expires

American Airlines Group Inc AAL said in a letter to employees Wednesday that 19,000 will be furloughed starting Thursday after the federal Payroll Support Program expires.

Airline Layoffs Underway As Stimulus Talks Continue: Talks on extending the relief program under the Coronovirus Aid, Relief and Economic Security — CARES — Act are ongoing between the White House and House Speaker Nancy Pelosi, American Airlines CEO Doug Parker said in the letter, citing a conversation with Treasury Secretary Steven Mnuchin. 

The Senate and the House of Representatives are also deliberating the extension of payroll support an alternative to the broader relief package, he said. 

If the grant is approved in the coming days, American Airlines will reverse the furloughs, Parker said. 

United Airlines Holdings Inc UAL is also prepared to furlough 13,000 staff Thursday, Reuters. The figure does not include any pilots.

If the larger economic relief bill passes, the airline industry would receive an additional $25 billion for payroll aid from the larger economic support package of $2.2 trillion, according to Bloomberg. 

Aviation Job Losses Could Go Much Deeper: Coronavirus lockdown measures and travel restrictions have rocked the airline industry. 

Further job cuts could come in other areas that are supported by the aviation sector.

Job losses tied to the downturn in air travel, including cuts in related industries, could be as high as 46 million worldwide, according to a new statement from the the Air Transport Action Group, a global, industrywide body. 

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