Dallas : American Airlines to cut 19,000 jobs when federal aid expires in October – .

American Airlines announced Tuesday that it will cut 19,000 jobs next October when federal aid protecting those jobs expires and the coronavirus pandemic continues to devastate travel demand.

These massive jobs measures already affect other companies in the aviation industry, which is reeling from a drop in demand and billions in losses.

The Fort Worth-based airline, which employed more than 140,000 people in March, is barred from laying off workers until Sept. 30 under the terms of a $ 25 billion federal aid package it received that was reserved for airlines to deal with the worst of the crisis.

But demand has only recovered modestly, presenting a dire scenario for airlines.

Shares in AA extended previous losses after the announcement, trading about 3% lower in morning trading.

Unions and truckers have urged lawmakers to provide another $ 25 billion in aid to preserve jobs through March. The proposal has won support from both parties, but Congress has so far failed to reach another national aid package against the coronavirus that could include additional relief for airlines.

“The only chance to avoid these involuntary cuts on October 1 is a clean extension” of federal aid, the executives said Tuesday.

AA and other airlines have offset some of the involuntary cuts by urging employees to make acquisitions, early retirements, and unpaid or partially paid leave. AA warned 25,000 employees last month that their jobs are at risk in October.

More than 12,500 people have chosen to leave AA permanently, while another 11,000 will be on leave in October, the executives said.

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