American, United to Furlough Over 32,000 Employees

As the United States government continues to work on a stimulus package, American Airlines and United Airlines announced over 32,000 employees would be furloughed.

According to Reuters.com, American and United announced they would reverse course on the furloughs if a new stimulus package could be reached, with President Donald Trump proposing an additional $20 billion in aid for the airline industry.

American revealed it would furlough 19,000 employees, including some 1,600 pilots, while United said it would furlough 13,000 employees, none of which would be pilots after the carrier came to an agreement with its pilots’ union.

Carriers have been asking for another $25 billion in payroll support to protect jobs for an additional six months, but the caveat in the original loans that banned furloughs expired at midnight on Wednesday.

While tens of thousands of employees working for airlines around the U.S. have accepted buyouts or leaves of absence, the lack of demand due to travel restrictions and coronavirus fears has continued to impact the industry.

Airlines for America CEO Nick Calio revealed the industry was still pursuing all potential avenues for new assistance, saying,” People keep talking, but we need results.”

White House chief of staff Mark Meadows announced Wednesday night the $20 billion in aid would give devastated carriers a “six-month extension.”