'The hardest message': American Airlines to lay off 17,500 frontline workers due to coronavirus trav

[In It to Win It]

'The hardest message': American Airlines to lay off 17,500 frontline workers due to coronavirus travel slump

American Airlines warned in July that it would have to lay off up to 25,000 flight attendants, pilots and other front line workers this fall due to the steep decline in travel brought on by the coronavirus pandemic.

The final number came in lower thanks to voluntary employee exits and long-term leaves but the figure is still staggering: 17,500 workers. That is in addition to 1,500 management and administrative workers already laid off.

https://www.usatoday.com/story/travel/airline-news/2020/08/25/american-airlines-lay-off-17-500-employees-due-covid-19-slump/5632184002/

[dalton99a]

1. "Fewer choices for travelers and higher fares ahead"

[CrispyQ]

2. We all knew this was coming.

They only had to guarantee no layoffs for six months to get those forgivable relief loans. In the meantime, Main Street is closing shop, losing their jobs, and about to see a mass of evictions that most of us have never seen before in our lives. I hate that I'm a pessimist, I do, but I just don't see how we're not about to face a collapse that is, at the minimum, equal to the Great Depression.

[DarthDem]

3. As if they can't afford to keep them on

Perhaps they should reduce executive pay by some percentage before laying off lower-income workers. Hey, just a thought.

[dem4decades]

4. I'm not flying anymore, and I bet I'm like millions of Americans. Sorry they lost there jobs.

[Klaralven]

5. Extending the Payroll Protection Program will simply delay the necessary adjustment to lower volume

Businesses have found that they can do more via telecommunications. This will result in a permanent reduction in business travel. Business travelers pay higher ticket prices than leisure travelers, and business travel revenues cover airlines fixed costs, while leisure travel is priced more to incremental costs of filling the last seats. Lower business travel will result in higher leisure travel ticket prices. This will, in turn, decrease leisure travel volumes.

The longer airlines delay adjusting to this new reality, the more painful the adjustment will be.

[Wellstone ruled]

6. So the Early Retirrement

and Voluntary leave program missed it's numbers. BTW,Southwest has been signaling a massive lay off in mid September or by October 1 st. 35k? ouch.

Sky West who fly's shuttles for United and Delta have benched a bunch of their people. The reality check is now hitting Utah as a result.