Airline job cuts could pressure Congress and Trump on stimulus

American Airlines warned employees on Tuesday that it would cut up to 19,000 workers on Oct. 1, saying that there was little sign that the pandemic-induced reluctance to travel was diminishing. The airline is looking to cut thousands of flight attendants, pilots, technicians, gate agents and other staff, it said. Including buyouts, retirements and leaves of absence, the company expects to have about 40,000 fewer employees on Oct. 1 than it did before the pandemic, a 30% decline in its work force. Airlines are seeking to put pressure on Congress and the Trump administration to strike a deal on another coronavirus stimulus package. Passenger airlines received $25b to help pay workers under a March legislative package, with American alone receiving $5.8b. Evidence is mounting that the once-strong economic recovery is losing steam. Hiring slowed in July, and various indicators suggest it has slumped further in August. Weekly claims for unemployment benefits have jumped back above one million, reversing a gradual decline. And new data on Tuesday showed that consumer confidence fell in August to its lowest level since the pandemic took hold. Economists attribute the slowdown, at least in part, to the waning federal support for families and businesses. “This is not a stopgap crisis,” said John Lettieri, president of the Economic Innovation Group, a Washington research organization. “It is a prolonged, deep, far-reaching crisis that is going to challenge the ability of businesses to survive.”<br/>