American Airlines to Cut 40,000 Jobs Without a New Coronavirus Stimulus
American Airlines Group (NASDAQ: AAL) said on Tuesday that it expects at least 40,000 job cuts in early October, including about 19,000 involuntary furloughs, as the airline braces for falling demand and begins to adjust to life without government payroll support.
American and other airlines have been hit hard by the coronavirus pandemic, with travel demand down more than 70% year over year. But the industry has been able to avoid involuntary layoffs thanks to funding provided by the CARES Act stimulus legislation. The government provided $25 billion in payroll protection in return for the industry avoiding furloughs through Sept. 30.
Image source: American Airlines.
Source Fool.com
