American Airlines to warn staff this week about potential furloughs

American Airlines is planning to warn employees this week about potential furloughs, the latest carrier to prepare staff for job cuts as the coronavirus pandemic roils the airline business. The terms of $25B in federal coronavirus aid prohibit carriers from laying off workers or cutting their pay rates through Sept. 30, but weak demand is forcing airlines to cut costs. The Worker Adjustment and Retraining Notification Act requires employers to notify staff about possible layoffs or temporary furloughs generally 60 days in advance and it is not guaranteed that employees who receive these warnings will be laid off. American earlier this month said it is overstaffed by about 20,000 people for its reduced fall schedule. The notices will go out to front-line employees like pilots, flight attendants, mechanics and others, according to people familiar with the matter. American had more than 133,000 employees as of the end last year and laboUr accounted for more than a third of its operating expenses. “Our expectation is that WARN notices will be sent next week,” said Chip Long, American’s managing director of flight line operations, in a July 10 audio message for pilots, which was heard by CNBC. “Again, our hope is to very soon engage with APA and seriously explore every opportunity to take care of our pilots while taking care of our airline.”<br/>