American Airlines cancels furloughs

American Airlines will cancel furlough notices sent to 13,000 employees after Congress passed a $1.9 trillion aid package, the third pandemic-relief legislation since the beginning of covid-19 a year ago. President Joe Biden is expected to sign the measure into law by the end of the week.

Airlines are in line for $14 billion in grants and loans in exchange for promises not to furlough or lay off employees until the end of September.

That means that the government will once again be subsidizing jobs for Fort Worth-based American Airlines, which has already taken more than $9 billion in stimulus aid and is likely in line for another $3.1 billion with this package.

“The bill is now on its way to President Biden for his signature so that it can be signed into law,” said a letter to employees from American Airlines Chief Executive Doug Parker and President Robert Isom on Wednesday. “Once that happens, it will extend the commitment that all U.S.-based American Airlines team members will continue to receive pay and benefits through Sept. 30, 2021.

“For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled — you can tear them up!” the letter said.

Southwest Airlines has received about $5 billion in government aid so far and would be in line for roughly $1.7 billion more under the new bill. The bill keeps some of the same restraints on airlines as previous stimulus deals did, namely restrictions on executive pay and dividends, and prohibitions against pay cuts.

Dallas-based Southwest said in early January that it would not furlough any employees or cut pay in 2021.