American plans 19,000 furloughs, layoffs in Oct.
coronavirus outbreaks in the country. Passenger traffic has recovered slightly since then but remains down 70% from a year ago, and carriers say they need fewer workers.
American’s announcement comes one day after Delta Air Lines said it will furlough 1,941 pilots in October unless it reaches a cost-cutting deal with the pilots’ union.
In March, passenger airlines got $25 billion from the government to save jobs for six months, and American was the biggest beneficiary, receiving $5.8 billion. The money, and an accompanying ban on furloughs and layoffs, expire after Sept. 30, although airlines and their labor unions are lobbying Congress for another $25 billion and a six-month reprieve from job cuts.
When the federal relief was approved, “it was assumed that by Sept. 30, the virus would be under control and demand for air travel would have returned. That is obviously not the case,” American CEO Doug Parker and President Robert Isom said in a letter to employees Tuesday.
American plans to fly less than half usual schedule in the fourth quarter.
The airline, based in Fort Worth, Texas, announced last week that it will pull out of 15 smaller U.S. cities in October, a move that was seen as a warning shot to Washington that it should approve more money for airline payrolls.
Airlines were the only industry to get special treatment in a $2.2 trillion virusrelief measure approved in March. There is broad support in Congress for extending that help, but it is stalled by a breakdown in negotiations between the White House and congressional Democrats over a new aid package.
American’s cuts include jobs at affiliates that operate American Eagle regional flights.
United Airlines warned 36,000 employees in July that they could lose their jobs in October. The airline has not updated that figure. Southwest Airlines has said it doesn’t expect to impose furloughs or layoffs this year, although like others, Southwest is encouraging employees to take buyouts or early retirement. its
UN: Global tourism lost $320 billion from virus
UNITED NATIONS — The global tourism industry has been devastated by the coronavirus pandemic, with $320 billion lost in exports in the first five months of the year and more than 120 million jobs at risk, the U.N. chief said Tuesday.
Secretary-General Antonio Guterres said in a policy briefing and video address that tourism is the third-largest export sector of the global economy, behind fuels and chemicals, and in 2019 it accounted for 7% of global trade.
“It employs 1 in every 10 people on Earth and provides livelihoods to hundreds of millions more,” he said.
In addition to boosting economies, “it allows people to experience some of the world’s cultural and natural riches and brings people closer to each other, highlighting our common humanity,” he said.
But the U.N. chief said that in the first five months of 2020, because of the pandemic, international tourist arrivals decreased by more than half and earnings plummeted. Guterres said this has been a “major shock” for richer developed nations “but for developing countries, it is an emergency, particularly for many small island developing states and African countries.”
Tourism for some countries represents more than 20% of their GDP, he said.
Sandra Carvao, the U.N. World Tourism Organization’s chief of market intelligence and competitiveness, said the $320 billion in lost exports from January to May is three times what was lost during 2009 at the height of the last global financial crisis.
According to the policy briefing, “export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020” and that “could reduce global GDP by 1.5% to 2.8%.”
The policy paper said jobs in associated sectors, including food service, that provide employment for 144 million workers worldwide are also at risk.