American Airlines CEO sees 10%-20% extra staff in July 2021
CGTN

American Airlines Group Inc expects to have between 10 percent and 20 percent more workers than needed in July 2021, Chief Executive Doug Parker told employees at a town hall this week, and said that avoiding furloughs will be difficult.

American Airlines passenger planes crowd a runway where they are parked due to flight reductions made to slow the spread of the coronavirus disease, Tulsa International Airport, Tulsa, Oklahoma, U.S., March 23, 2020. /Reuters

American Airlines passenger planes crowd a runway where they are parked due to flight reductions made to slow the spread of the coronavirus disease, Tulsa International Airport, Tulsa, Oklahoma, U.S., March 23, 2020. /Reuters

Weathering a sharp hit to business due to the coronavirus pandemic, American and other U.S. airlines have warned of furloughs in October, which is when government payroll aid for airlines expires, but said they were hoping to avoid them.

"It's going to be even harder than I thought," Parker said at an employee town hall on Wednesday, adding that "revenue is not coming back as fast as we'd like."

A video recording of the town hall, which showed Parker wearing a protective face mask, was reviewed by Reuters.

As of the end of last year, American had 133,700 employees, more than any other U.S. airline.

In October, American expects to have between 20 percent and 30 percent more workers than needed, Parker said, while adding that furlough decisions could revolve more around the July 2021 forecast of 10 percent to 20 percent excess workers, with potentially less pain for pilots than other employees such as flight attendants.

"It really makes zero sense to go furlough a pilot in October if you're going to need that pilot again in July," Parker said, noting the costly training needed to bring a pilot back from a furlough.

American's management has shared the job numbers with unions and was working on solutions, Parker said. The number of extra flight attendants is expected to be in the higher range, Parker added.

Under the CARES Act that gave the U.S. aviation sector a bailout of 32 billion U.S. dollars to cover payroll, airlines cannot force any involuntary furloughs before October and have been trying to encourage employees to accept voluntary exit deals.

Major aviation unions have asked the U.S. Congress to consider extending the payroll support package through March.

Source(s): Reuters