An airline employee walks past empty American Airlines check-in terminals at Ronald Reagan Washington National Airport in Arlington, Virginia on May 12, 2020.
American Airlines warned on Wednesday that 25,000 front-line employees – nearly 20% of the workforce – were planning to take vacations, the youngest airline preparing employees for the job cuts as the coronavirus pandemic hopes the travel requirement will recover quickly.
The airline also urged employees to purchase new buyout and early retirement packages to remove as many people as possible from the payroll before they involuntarily cut their jobs.
Airlines are prohibited from cutting jobs or wage rates for workers until September 30th.
According to the Law on Adaptation and Retraining of Employers, employers usually have to inform staff about possible layoffs or temporary vacation days 60 days in advance. The workers said that their jobs are at risk and will not necessarily be fired.
The WARN communications go to 37% of American Airlines flight attendants or 9,950 people and 2,500 of its pilots or 18%, 3,200 maintenance workers and 4,500 fleet service employees.
The American, based in Fort Worth, Texas, said earlier this month that he would employ around 20,000 more people than he needed for his reduced fall plan. CNBC reported earlier this week that the announcements were pending.
United informed nearly 36,000 employees last week that they were on vacation, nearly 40% of its workforce, and Southwest Airlines told employees on Monday that the airline had to triple passenger numbers by the end of the year to avoid layoffs or vacations .
American Airlines shares rose 2% after entering the market.