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American Airlines fears 13,000 could lose jobs without Covid support package

AMERICAN Airlines fears as many as 13,000 workers could lose their jobs amid uncertainty over its future as demand for travel remains stagnant due to the coronavirus pandemic.

A US aid package for airline workers is set to expire on April, but unions are pressing for a further $15 billion (£11bn) to protect jobs through the summer.

United Airlines has sent fresh furlough warnings to 14,000 employees, while Delta Air Lines and Southwest Airlines have initiated voluntary leave programmes to avert lay-offs.

“We are nearly five weeks into 2021 and, unfortunately, we find ourselves in a situation similar to much of 2020,” American Airlines chief executive Doug Parker and president Robert Isom said in a statement. 

“The vaccine is not being distributed as quickly as any of us believed and new restrictions on international travel that require customers to have a negative Covid-19 test have dampened demand,” they noted.

The company furloughed some 19,000 staff in October after the last aid package expired but recalled them in December following a new US government cash boost for the aviation industry.

American Airlines saw its revenue decrease by 62 per cent last year and reported an annual loss of $8.9bn (£6.5bn). It is considering measures including voluntary furlough and early retirement.

President Joe Biden has proposed a $1.9 trillion (£1.4tn) relief package, which is being debated in Congress.

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