American Airlines will use coronavirus funds to save jobs
Many of the roughly 33,000 North Texans who work at American Airlines are likely to see significant reductions in their paychecks, even though the Fort Worth-based company is slated to receive $12 billion in federal stimulus funds.
In a letter to employees Monday, the airline’s chief executive officer, Doug Parker, reiterated that the airline intended to use the estimated $12 billion to ensure that no workers lost their jobs through Sept. 30. About half of the money would come in the form of loans, and the rest in grants to ensure the airline can pay workers without layoffs.
“These funds are being distributed to ensure continuation of essential airline service and protect jobs,” stated the letter, which was signed by Parker and company president Robert Isom. “We intend to apply for these funds and are confident that, along with our relatively high available cash position, they will allow us to fly through even the worst of potential future scenarios.”
But despite those assurances, many employees could see take home pay reductions of 20% or more, mainly as a result of the airline’s dramatic reduction in flights, one airline union official said.
