American Airlines Group Inc. said Thursday it prepares to suspend flights to 15 U.S. airports in October as travel demand continues to be low due to the coronavirus pandemic.
What We Know:
- For weeks, Congress has been contemplating whether to grant U.S. airlines an additional $25 billion in payroll aid that would keep tens of thousands of airline workers on the job for another six months and prolong minimum service requirements.
- American said it would cancel just over 700 flights in October to and from those 15 airports but predicted it could make further cuts or reconsider if Congress provided more assistance.
- The debate over airline assistance has stalled as Congress has struggled to reach an agreement on a larger coronavirus assistance package. Some lawmakers believe Congress and the White House may not reach a deal until September.
- American is currently the only carrier offering scheduled service to nine of the airports where it plans to suspend flights. They are: Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Joplin, Missouri; New Haven, Connecticut; Roswell, New Mexico; Stillwater, Oklahoma, and Williamsport, Pennsylvania.
- American also plans to suspend flights to these airports: Sioux City, Iowa; Kalamazoo/Battle Creek, Michigan; Huntington, West Virginia, New Windsor, New York, Springfield, Illinois; Lake Charles, Louisiana.
- On Wednesday, the U.S. Travel Association said that travel businesses and workers could not wait until September or after the election. Congress has to come together immediately to pass relevant legislation.
- American’s statement is the latest step to cut costs after it and other airlines achieved up to billions in losses throughout the pandemic. The company mentioned in May that it would cut 30% of its administrative and management jobs.
Approximately 25,000 American Airlines employees could be furloughed on October 1. The company also worked out a settlement with its pilot’s union to offer more leaves and early-retirement packages.
