Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

American Airlines moves ahead with worker recalls even as Trump balks at aid deal

Published 12/23/2020, 11:07 AM
Updated 12/23/2020, 05:20 PM
© Reuters. People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York

© Reuters. People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York

By Tracy Rucinski

CHICAGO (Reuters) -American Airlines said on Wednesday it is moving forward with plans to bring back furloughed workers and give them paychecks by Dec. 24, even after President Donald Trump threatened to veto a coronavirus relief bill.

Trump’s threat on Tuesday to veto the $892 billion coronavirus relief bill approved by Congress this week, which includes $15 billion for airlines to bring back furloughed workers and pay them through March, left millions of Americans in limbo.

"While this is an unexpected development, we are moving forward with recall plans and furloughed team members will receive funds in their accounts on Christmas Eve as planned," a spokeswoman for American said.

Nearly 8,000 American Airlines (NASDAQ:AAL) flight attendants have already received recall letters, the company said, and similar letters are going out in phases to other employees across the company.

The letters, sent by email and FedEx (NYSE:FDX), ask flight attendants to either accept the recall or resign by Jan. 4.

By Tuesday afternoon, around half had already accepted, and only one had resigned, one person with knowledge of the matter said.

American furloughed nearly 19,000 employees after a first federal payroll support package for airlines expired in October.

United Airlines, which furloughed around 13,000 of its employees, has also pledged to recall them if Washington approves fresh aid.

© Reuters. American Airlines planes are parked at the gate during the coronavirus disease (COVID-19) outbreak  in Washington

It did not reply to a request for comment on Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.