American Airlines warns 25,000 workers could lose jobs over falling demand

American Airlines is notifying about 25,000 workers that their jobs could be eliminated in October because of the plunging demand for air travel, adding to the toll that the virus pandemic is taking on the airline industry.

American’s top executives said on Wednesday that the number of layoffs or furloughs could be lower if enough workers take buyouts or accept partially paid leave for up to two years.

Airline officials thought they might avoid any furloughs “because we believed demand for air travel would steadily rebound by October 1 as the impact of Covid-19 dissipated. That, unfortunately, has not been the case”, CEO Doug Parker and President Robert Isom said in a memo to employees.