Staff or Guest writer for The Dog of Wall Street.

2020-07-15 22:20

American Airlines warned about 25,000 front-line employees of potential furloughs. The company warned that demand for air travel is slowing again as COVID-19 cases increase and states re-establish quarantine restrictions. American, which is prohibited from cutting jobs or pay rates until Sept. 30, due to the $25 billion in federal payroll support, also urged employees to take buyout and early retirement packages before being forced to cut their jobs.

They noted, however, that if Congress passes another round of payroll support through March 31, the need for involuntary furloughs at that time would be “much less throughout the industry” because “there would most certainly be more demand for air travel.” The stock is down 53% Year to Date.