More cuts coming to American Airlines as CEO hopes for $12 billion from Congress
American Airlines announced plans Friday for further cuts to airline travel, but CEO Doug Parker says the company could see relief in a possible $12 billion payment from Congress.
The latest cuts come as the airline continues to see falling travel demand due to the COVID-19 outbreak.
“Empty airlines create anxiety for we airline people,” American CEO Doug Parker said in a video statement Thursday. “… When people stay home, we start to worry.”
The airline will cut 60% of its capacity in April and up to 80% of its capacity in May compared to last year, American said in a statement Friday.
Those cuts would include 60 to 70% cuts in domestic flights in April and 70 to 80% cuts in May.
International flights would be cut by 80 to 90% in both April and May, according to the airline.
“With much of America now living under shelter-in-place restrictions, demand for air travel has fallen precipitously,” Parker said. “Today we’re flying less than half of our previously scheduled domestic flights, and those aircrafts are flying with fewer than 15% of the seats full.”
Parker said Thursday the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, being debated by Congress would greatly help the airline.
American could be eligible to receive about $12 billion from the CARES Act, Parker said.
Parker said in order to be eligible to receive those funds, American would need to make a commitment to “retain some service to every airport in the United States that has commercial air service today,” and to not involuntarily furlough any employees. Those commitments would run through September, he said.
The airline announced an earlier round of cuts last week that includes flights between Charlotte Douglas International Airport and London Heathrow Airport. Earlier this month, American suspended flights between CLT and German cities Frankfurt and Munich.
It wasn’t immediately clear which CLT flights would be affected by the cuts announced Friday. American — the dominant carrier at Charlotte’s airport — celebrated the milestone of operating more than 700 daily flights out of CLT mid-February.
Charlotte airport workers took a big hit this month. Hundreds of airport restaurant workers were laid off or put on unpaid leave as N.C. Gov. Roy Cooper ordered the closure of all restaurants and bars.
The workers’ union, the Unite Here Local 23, told the Observer at the time more than 600 airport concessions employees employed by HMSHost were given the option of being temporarily laid off or taking unpaid leave.
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