American Airlines Group Inc. will start laying off 19,000 workers on Thursday as originally scheduled, spurning an appeal from Treasury Secretary Steven Mnuchin as he negotiates with Congress about extending payroll support for U.S. carriers.
The airline will reverse the furloughs if the government agrees to provide additional aid in the next few days, Chief Executive Officer Doug Parker told employees Wednesday. House leaders postponed a vote on a broad economic relief plan, which includes $25 billion in payroll aid for airlines, to give Speaker Nancy Pelosi more time to hammer out a compromise with Mnuchin.
American’s decision to move ahead with job cuts heightens the pressure on Mnuchin and Pelosi as they haggle over the Democrats’ proposed $2.2 trillion stimulus package.
