US airlines cut tens of thousands of jobs as COVID-19 federal aid deal fails

American Airlines and United Airlines have begun furloughs of more than 32,000 workers on Thursday after Congress failed to pass a last-minute deal to extend coronavirus relief aid to the embattled industry.

American Airlines CEO Doug Parker confirmed late Wednesday that his airline would go ahead with furloughing19,000 employees, including 1,600 pilots — or 14 percent of its pre-pandemic workforce.

"Tomorrow, we will begin the difficult process of furloughing 19,000 of our hardworking and dedicated colleagues (14 percent of its pre-pandemic workforce)." Parker wrote in a memo to staff members. "I am extremely sorry we have reached this outcome. It is not what you all deserve."

United Airlines also said, "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."

Tens of thousands of other American airline workers at those airlines and others US carriers including Delta Air Lines and Southwest Airlines have accepted buyouts or leaves of absence aimed at reducing headcount as carriers battle a health crisis that has upended the global travel industry.

US airlines have been pleading for a second $25bn bailout that would protect jobs for another six months. 
US Treasury Secretary Steven Mnuchin has said no deal was reached in talks with House of Representatives Speaker Nancy Pelosi on a bipartisan COVID-19 relief package.

House Democrats have proposed an aid package that would include an extension of the protections, but Senate Republicans have yet to agree.

Senate Majority Leader Mitch McConnell has called the coronavirus relief proposal "outlandish."

Many airline hubs are in swing states, so the proposed cuts are in areas President Donald Trump needs to win in November election. That could put pressure on his Republican allies in Congress to make a deal with Democrats.

Association of Flight Attendants-CWA President Sara Nelson said in a statement that urged lawmakers to reach a deal, "Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck."

"They don't know how they will pay rent, feed their families, or cover the cost of their prescriptions or medical care. It did not have to be this way."

Toni Valentine, who works for United Airlines Reservations in Detroit, said that, "Without aid from the federal government, I will be laid off on October 1 and will lose my paycheck and my health insurance."

"Hundreds of thousands of airline workers are facing financial ruin through no fault of our own. How will we take care of our families without a paycheck and health insurance?"

US airlines are operating about half their 2019 flying schedules and suffering a 68% decline in passenger volumes.

The impact of the coronavirus on travel may cost as many as 46 million jobs globally, according to projections published on Wednesday by the Air Transport Action Group.

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