American Airlines employees are getting five more days to decide whether to take one of the Fort Worth-based airline's voluntary leave offers or risk furloughs expected to hit the industry hard in October.
In a letter Tuesday to employees, CEO Doug Parker and President Robert Isom said the deadline for taking a buyout or extended leave of absence is now Aug. 17. It had been Wednesday.
Government stimulus funds for airlines run out Oct. 1, and airlines are then allowed to start laying off or furloughing workers. Airlines and their employee unions are hoping for another $25 billion in payroll grants to avoid looming job cuts.
The airline's top executives told employees its uncertain whether Congress will reach a deal on new COVID-19 relief money to help the struggling industry keep workers on the payroll. They called the choice facing workers "a significant decision."
"We and our union partners have not let up in our efforts to make the case for a (Payroll Support Program) extension," said the letter from Parker and Isom. "We believe the right thing to do is keep the application window open until we have more clarity about how Congress and the administration intend to proceed."
Parker and Isom said more than 14,000 employees reached out to congressional representatives last week, sending more than 40,000 emails.
"We recognize it's very difficult to make a decision on whether to participate in the voluntary programs when a potential PSP extension is under discussion," their letter said.
In July, American sent more than 28,000 furlough notices to unions representing mainline and regional employees. Not everyone who received a notice will be placed on furlough, but the company has said it expects to be overstaffed by 20,000 employees based on fall forecasts that flying will be down about 30%.
On Sunday, more than 830,000 travelers passed through Transportation Security Administration checkpoints at U.S. airports. That was down about 70% from the same day a year ago.
But it was the highest passenger count since March 17, four days after the U.S. declared COVID-19 a pandemic.
American Airlines also on Tuesday extended its change fee waiver for tickets bought by Sept. 30 for travel through the end of year. However, travelers will be charged any difference in ticket prices when trips are rebooked.
