American Airlines threatens layoffs again as federal aid is set to expire

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American Airlines is getting the word out to nearly 13,000 employees about a possible layoff or furlough coming soon.

The airline is sending out those warning letters this week as a second round of federal payroll aid is set to expire and travel demand remains low.

"The vaccine is not being distributed as quickly as any of us believed, and new restrictions on international travel that require customers to have a negative COVID-19 test have dampened demand," American's CEO Doug Parker and President Robert Isom wrote in a note to staff.

According to a securities filing by American, furlough notices will go to 4,245 flight attendants, 3,145 fleet service workers, 1,850 pilots, 1,420 maintenance workers, 1,205 in passenger service, 100 dispatchers and 40 instructors.

American furloughed 19,000 workers in October, but put them back on the payroll at the beginning of December.

Rival United Airlines last Friday sent similar furlough warnings to 14,000 staff members, NBCDFW.com reported.

The latest $15 billion Congress approved for U.S. carriers late last year required airlines to recall the employees they furloughed in the fall and maintain payroll through March 31. It was the second round of Covid aid for the industry; Congress gave airlines $25 billion last March to keep them from cutting employees through the fall.

Along with the drop in travel for business and pleasure, travelers on airplanes, and all public transportation, are now required to wear face masks to help curb the spread of COVID-19.

Airlines have required masks for some time and have banned more than 2,000 passengers for refusing to wear one. Flight attendant unions have said a federal rule will make it easier for crews to enforce the requirement.

The order exempts children under 2 years of age and people with a disability that makes it unsafe to wear a mask. Airlines struggled with an exemption for safety and stopped allowing it. The CDC said transportation operators can require medical documentation.

Featured Image Photo Credit: JBurkett Photo