After a turbulent year for air travel, American Airlines is celebrating the passage of the spending bill.
The airliner said in a note to workers on Wednesday that the passage of the $1.9 trillion spending bill will save 13,000 jobs.
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“For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled — you can tear them up!” CEO Doug Parker and President Robert Isom said in the memo, obtained by the Washington Examiner. “We will also soon share details about the status of voluntary leave and early out applications, once all application windows close.”
The spending bill passed in the House on Wednesday and will extend the Payroll Support Program, a provision in last spring’s CARES Act that was set to expire at the beginning of next month. The airline industry received a $15 billion infusion last time and was preparing for additional layoffs given President Biden’s original proposal didn’t include the funding, but House Democrats added it.
The new bill, which was only backed by Democrats, will extend the program through the end of September and will give $14 billion to support workers of air carriers. Biden is expected to sign the bill on Friday.
“Since the start of the pandemic, lawmakers from both parties have recognized the essential work each of you undertakes, the critical infrastructure the American team provides to our country and the world, and the economic risks of a weakened U.S. airline industry,” Parker and Isom wrote.
They also encouraged employees to thank government leaders for their work in helping the airline industry.
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Last year, the airline industry was hit hard during the pandemic as health guidelines urged people to avoid traveling. In total, 500 million fewer people flew in 2020, a 61% decline from the record-high 824 million people the Transportation Security Administration saw the previous year. Additionally, a number of airlines had to layoff workers during various stages of the pandemic. The industry cut 29,000 of its workers in October, with American Airlines and United both cutting their workforces by 32% throughout the year.
