American Airline sent letters to 13,000 employees Wednesday informing them they may be laid off as the second round of federal payroll assistance expires next month and travel demand remains sluggish. Many were notified for the second Time in six months that they could keep their jobs unless travel demand rebounds strongly soon or Congress provides a third round of assistance by April.
American Airlines Executive Doug Parker wrote to employees, “Vaccine distribution is not happening as fast as we thought, and new restrictions on international travel requiring travelers to present proof of a negative virus test have dampened demand.
United Airlines, a competitor to American Airlines, issued a similar warning to its 14,000,000 employees on Friday.
Congress most recently passed a $15 billion bailout for U.S. airlines late last year, requiring them to recall employees who lost their paychecks in the fall and keep them paid until the end of March. This is the second round of new crown relief for the airline industry; the first was a $25 billion aid package passed by Congress last March that required airlines not to lay off workers until the fall.
The airline unions are now seeking an additional $15 billion from the federal government to keep union members on the job until Sept. 30.
U.S. airlines just recently reported record annual losses of $34 billion, and several chief executives said last month they do not expect a strong rebound in air travel in the near future.
U.S. law generally requires employers to notify employees 60 days in advance of potential or temporary layoffs, but receiving notice does not necessarily mean they will lose their jobs.
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