Multiple U.S. airlines have started to lay off thousands of airline workers after the economic relief plan ended Oct. 1.
American Airlines CEO Doug Parker confirmed the airline would begin by laying off 19,000 employees — 14% of the pre-coronavirus staff, according to NBC News.
“Tomorrow, we will begin the difficult process of furloughing 19,000 of our hardworking and dedicated colleagues,” Parker wrote to staff members. “I am extremely sorry we have reached this outcome. It is not what you all deserve.”
United Airlines has also announced it will be cutting thousands of jobs. A letter to staff read, “We regrettably are forced to move forward with the process of involuntarily furloughing about 13,000 of our United team members. We implore our elected leaders to reach a compromise, get a deal done now, and save jobs.”
However, both companies have said they will reverse their decisions if additional funding is found, per CBS.
At the beginning of the pandemic, congress agreed to finically aid U.S. airlines through the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The act covered nearly 75% of payroll expenses for the airlines’, on condition they could not lay off any employees until Oct. 1., according to BBC News.
The airlines have received billions of federal funding.
It was expected that as of October the U.S. would have resumed to more normal travel and expenditures levels, but “garbled national guidance and inconsistent adherence to safety precautions squandered the bought time for travel and other industries,” according to NBC.
These layoffs increase pressure on Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, who have been trying to agree on another relief plan. Pelosi asked the airlines to hold off on furloughs since aid is imminent, she said, per The Hill.
House Democrats proposed an overall relief package that would include a continuation of protection, but Senate Republicans have yet to agree on the package.
Talks on a larger package resumed Oct. 1. with Mnuchin saying, “There’s money for airlines.”