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American Airlines warns of as many as 13,000 layoffs

Christian Fernsby |
American Airlines will notify 13,000 workers that they could be laid off due to the prolonged industry downturn if the COVID-19 situation doesn't improve and US government aid is not extended, the carrier said Wednesday.

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The airline expects to fly at least 45 percent less in the first quarter, American's executives said in a letter to employees, extending the industry slump as expectations for a travel recovery are delayed due to the slow rollout of coronavirus vaccines.

"Of course, this is not where we want to be, and we will work with union leadership to do everything we can to mitigate job impact as much as possible," said the letter from the carrier's Chief Executive Doug Parker and President Robert Isom.

American no longer expects to be at full capacity this summer, they said.

"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 added.

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