American Airlines CEO Says Co. Will Be Forced To Cut Flights Without New Relief Package: CNBC


(RTTNews) – American Airlines Group Inc. (AAL) will be forced to discontinue service to additional U.S. markets unless new coronavirus relief package is received, CEO Doug Parker told CNBC on Thursday.

The airline has already cut service to 13 cities through the month of November.

The airlines received aid under the federal Payroll Support Program or PSP under the CARES Act passed by Congress in March, that banned furloughs. They were hoping for an additional $25 billion in funding.

However, House Speaker Nancy Pelosi on Thursday said that there won’t be a stand-alone airline aid package without a larger coronavirus stimulus package.

Early this month, with the expiration of US federal payroll program on September 30, American Airlines and United Airlines started to furlough their employees, that is expected to affect around 32,000 workers in total.

However, the companies in their memos to employees reportedly said they will be recalled if and when the Congress passes another financial lifeline to the airline industry.

American Airlines is set to furlough 19,000 employees, as announced in August. This includes around 1,600 pilots. Meanwhile, United Airlines plans to furlough more than 13,000 employees, but no pilots.

Parker said American and other major carriers are pushing back more flight cuts, holding out hope for extra government aid.

“There will absolutely be discontinuation of service to small communities, and there will be much less service to larger communities” without more coronavirus relief, he said.

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