American Airlines grounds 55,000 flights, offers voluntary leaves to employees
American Airlines is grounding 55,000 flights in April and is parking 450 planes — about half of its fleet — in response to decreased demand and travel restrictions due to the coronavirus pandemic.
All long-haul international flights were suspended through May 6, including all routes from Miami International Airport to Aruba, Brazil, Chile, Colombia, Ecuador, Guatemala, El Salvador, Saint Maarten and Peru. All flights to Europe were also grounded, with the exception of one flight daily from Miami and Dallas to London Heathrow, and three flights per week from Dallas to Tokyo Narita.
Service to other Caribbean and Central American countries is being handled on a nation-by-nation basis, as each has instituted different travel restrictions due to the virus.
The State Department on Thursday issued a “Global Level 4 Health Advisory” urging Americans not to travel internationally at all and to return to the United States if they can, which could lead to further airline cuts.
Domestic flights on American Airlines will drop by 30 percent in April with further reductions expected in May. The carrier normally operates more than 350 flights a day from Miami International Airport.
In a letter sent Thursday to employees, American Airlines president Robert Isom said: “This is a crisis unlike any we’ve faced in the past. Together, we will continue to be aggressive on all fronts so that we ensure American’s future is intact. ... We are in the fight of our lives, and we will win. Now is the time to come together and rally against a common enemy.”
The airline, which is the third-largest private employer in Miami-Dade County with more than 13,500 employees, offered voluntary unpaid leaves of absence to most union members. The company is offering an early retirement for employees with 15 years of service, which would allow them to keep their medical care at active employee rates. Voluntary leaves will also be offered to some members of management and support staff.
Isom announced a hiring freeze and pay freeze. New flight attendant training classes were suspended.
According to The Dallas Morning News, American Airlines is taking out a $1 billion line of credit from Citibank to get through the next few months.
“While these steps are unparalleled in our history, we expect demand to fall even more before it gets better,” Isom said in the letter. “More network reductions are being worked in real-time as we see bookings decline.”
The airline is waiving change fees for customers who purchased tickets prior to March 15 for travel to Europe, including the United Kingdom or Ireland, through May 31. American’s Reservations team will contact customers whose flights have been canceled directly by email or telephone. Customers who booked through a travel agent will be contacted by their agency directly. If a flight is canceled and a customer chooses not to be rebooked, they may request a full refund by visiting aa.com/refunds.
“The spread of COVID-19 stops with all of us following CDC guidelines, practicing social distancing and educating ourselves with facts,” Isom said. “Likewise, our future starts with all of us providing essential air service to keep our country moving, taking care of each other and our customers, and building for a brighter day.”
