American Airlines to begin furloughing 19,000 employees

American Airlines will begin furloughing 19,000 employees from Thursday, as talks over federal aid for airlines failed in Congress, according to a letter to employees from CEO Doug Parker.

The PSP (Payroll Support Program) federal aid package for airlines, which prohibits job and pay cuts, was to expire on October 1 and lawmakers had not approved a new package on Wednesday.

Airlines have been putting pressure on Washington for 25 billion dollars in state aid.

In the letter, Parker said the airline could reverse the furloughs, were Congress to strike a deal.

Weak demand

“.. In an effort to encourage cooperation and keep hope alive for our team, I informed the Secretary that if these efforts to extend PSP (Payroll Support Program) are successful over the next few days, we will reverse our furlough processes and recall any impacted team members,” Parker wrote.

The aviation industry continues to grapple with weak demand due to the coronavirus outbreak.