American Airlines Group Inc. says it is considering halting flights to 15 airports across the U.S. starting October as the continuing worldwide health crisis continues to weigh on travel demand.
Federal government stimulus through the CARES Act expires Oct. 1. Under conditions stipulated in the relief program consisting of billions of dollars in paycheck aid for U.S. carriers, American Airlines has been mandated to keep operating - even if it had to fly empty planes unless given an exemption by U.S. aviation officials.
The service reductions, which are expected to affect smaller airports in important parts of the U.S., will be enforced starting Oct. 7. American Airlines said it could lay off as many as 25,000 ground and cabin crew.
U.S. lawmakers have been evaluating whether to give airline companies an extra $25 billion in payroll assistance to help tens of thousands of employees keep their jobs for another six months.
American Airlines said the route cancellations were planned for 30 days only but it could extend or reduce flights to more cities if travel demand remains low. It is a first step as the company continues to examine its network and strategies for more revisions in flights in the next few weeks, American Airlines said.
Competitor Delta Airlines, Inc. made similar changes to flights in June - trimming operations in the U.S. to 11 airports. The company didn't specify the exact date for a return to its normal routes.
Unions representing airline employees are asking the U.S. Congress to extend federal assistance for industry-based workers. While legislators are willing to provide more relief the likelihood of more stimulus remains in question as Capitol Hill debates a broader pandemic loan program.
A number of airlines have warned Congress they would have no choice but to cancel flights to some cities without a stimulus.
