Airlines have suffered major losses since travel screeched to a near halt as the coronavirus pandemic spread across the globe.
and cash raised provide some stability, the American Airlines letter said the company needs to make cuts where its"most significant expense" occurs: in compensation and benefits.
The airline's management and support staff include about 17,000 people, American Airlines spokesperson Ross Feinstein told USA TODAY. "We must plan for operating a smaller airline for the foreseeable future," Eberwein wrote. "We have already taken steps to prepare for this new reality, with nearlyThe airline has also accelerated fleet retirement and will fly roughly 100 fewer planes next summer than planned. Because the airline has shrunk, so must management and support staff, according to the letter."We will be a smaller airline, with fewer routes and fewer flights.
American will first offer a buyout option through June 10, though if not enough people volunteer, there will be layoffs, too, which would be communicated in July, Eberwein wrote. Laid-off employees would remain on the payroll until Sept. 30 and receive benefits and full pay but not severance.
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