American warns 13,000 employees of furloughs as airlines prepare to lose federal aid next month
American Airlines on Wednesday said it will send furlough notices this week to about 13,000 employees as a second round of federal payroll aid is set to expire next month and travel demand remains in tatters. The latest $15 billion Congress approved for U.S. carriers late last year required airlines to recall the employees they furloughed in the fall and maintain payroll through March 31. It was the second round of Covid aid for the industry; Congress gave airlines $25 billion last March to keep them from cutting employees through the fall. American is the only large U.S. carrier to furlough pilots, as United, Delta and other carriers reached deals with unions that allowed for some reduced flying or pay in exchange for not cutting jobs. The Allied Pilots Association, American Airlines pilots' union, said it would try to reduce the number of furloughs but criticized the airline's financial decisions in recent years and the fact that it didn't use voluntary measures to spread out flying to limit job cuts.cnbc.com
How China’s economy bounced back one year after first Covid warning: CNBC After Hours
Plus, CNBC.com's Leslie Josephs breaks down the industry outlook for airlines in 2021 after a disastrous 2020. Covid live updates: 'Gilligan's Island' star Dawn Wells dies at 82 from Covid complicationsThe coronavirus vaccine developed by AstraZeneca and the University of Oxford was approved for emergency use in the U.K. and is expected to be rolled out next week. People wanting to leave the U.K. have faced travel restrictions because a new coronavirus variant found in the U.K. is reportedly more transmissible. American Airlines expects to fly less than half of 2019 schedule through February as virus spreadsAmerican Airlines expects the impact of the coronavirus pandemic to continue to weigh on demand and schedules into 2021, the carrier's president said Tuesday. American and its competitors have warned investors in recent weeks that a surge in Covid-19 cases and new travel restrictions have hurt fourth-quarter revenue, despite a spike in travelers around the year-end holidays.cnbc.com
American Airlines expects to fly less than half of 2019 schedule through February as virus spreads
American Airlines flight 718, the first U.S. Boeing 737 MAX commercial flight since regulators lifted a 20-month grounding in November, takes off from Miami, Florida, December 29, 2020. American Airlines expects the impact of the coronavirus pandemic to continue to weigh on demand and schedules into 2021, the carrier's president said Tuesday. "We anticipate that's something that will carry on into January and February. We are hopeful that the vaccine will show some promise," he said. American and its competitors have warned investors in recent weeks that a surge in Covid-19 cases and new travel restrictions have hurt fourth-quarter revenue, despite a spike in travelers around the year-end holidays.cnbc.com
Boeing Max returns to US skies with first passenger flight
The American Airlines flight is scheduled to land at New Yorks LaGuardia Airport with about 100 passengers aboard, according to an airline spokeswoman. (AP Photo/LM Otero, File)American Airlines flew a Boeing 737 Max with paying passengers from Miami to New York on Tuesday, the plane’s first commercial flight in U.S. skies since it was grounded after two deadly crashes. American flight 718 carried 87 passengers on the 172-seat plane, and the return flight from LaGuardia Airport to Miami International Airport held 151 passengers, according to an airline spokeswoman. Brazil's Gol airlines operated the first passenger flight with a revamped Max on Dec. 9. Some relatives of people who died in the second crash, a Max operated by Ethiopian Airlines, contend that the plane is still unsafe.
Economists beg Congress to send more Covid-19 stimulus checks: CNBC After Hours
On today's show, CNBC's Ylan Mui breaks down a new letter from more than 100 economists begging Congress to send out another round of direct checks to the American people. Economists are calling for more stimulus checks. Here's where assistance plans standFor Americans who have had a tough year financially amid Covid-19, a second set of $1,200 stimulus checks would provide some much welcome relief. But lawmakers on Capitol Hill still need to work out their differences before they can approve another coronavirus stimulus package that will trigger those payments. "It's really too soon to tell how deep and how long there may be a depressed environment but we've seen some weakening of bookings."cnbc.com
Airline bookings drop ahead of Thanksgiving as coronavirus infections spike
Airline executives warned Thursday that bookings are starting to drop as new coronavirus cases hit records and government health officials advise against travel over Thanksgiving. "Certainly with the increase in infection rates really throughout the country we've seen a dampening of demand," American Airlines President Robert Isom said during the Skift Aviation Forum on Thursday. "It's really too soon to tell how deep and how long there may be a depressed environment but we've seen some weakening of bookings." The U.S. reported more than 170,100 new cases of the virus on Wednesday, the second-highest one-day spike reported to date, according to data compiled by Johns Hopkins University. Passenger traffic is hovering at about a third of last year's levels, according to federal data.cnbc.com
American Airlines plans 19,000 furloughs, layoffs in October
DALLAS American Airlines said Tuesday it will eliminate 19,000 jobs in October as it struggles with a sharp downturn in travel because of the pandemic. The furloughs and management layoffs announced Tuesday are in addition to 23,500 employees who accepted buyouts, retired early or took long-term leaves of absence. U.S. air travel plunged 95% by April, a few weeks after the first significant coronavirus outbreaks in the United States. 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. American plans to fly less than half its usual schedule and only one-fourth of its lucrative international service in the fourth quarter.