American Airlines and United Airlines plan to furlough 32,000 workers

American United and United Airlines will both furlough more than 32,000 employees starting from Thursday. This development came after talks for another national coronavirus package failed in Washington. Both airlines have categorically stated that they are willing to reverse the move if lawmakers reach a stimulus deal.

The previous airline paycheck support which prohibited airlines from laying off staff officially ended on Thursday, Oct.1. The aim of the relief package was to help airlines deal with the decreased demand in commercial flight bookings until there was a significant recovery. As the aid expires not much progress seemed to have been made as many airlines still struggle with their finances.

The last several months were spent with airlines urging Congress to approve another $25 billion payroll support, a proposal that won bipartisan support. The package would have also gone a long way in further preserving jobs through, until March 31, despite lower demands.

However, the full coronavirus package has failed to meet bipartisan support as lawmakers fail to reach final conclusions. Failure to come into agreement for the next stimulus package has caused 30,000 job cuts in the airline industry.

“Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck,” said the president of the Association of Flight Attendants-CWA Sara Nelson.

American United CEO, Doug Parker told employees that the airline will begin furloughing thousands of “hardworking and dedicated colleagues”, a move he described as a “difficult process”. The total number of furloughed American workers will be 19,000, nearly 14% of the airline’s entire workforce.

United Airlines will also cut more than 13,000 of its workers, according to the airline in a message to its staff. “We implore our elected leaders to reach a compromise, get a deal done now, and save jobs,” the airline said. Flight attendants make up the bulk of the airline’s furlough with 6,939 jobs on the line.

The executives of both airlines said they have no expectations for air travel demand to recovers to 2019 levels without a COVID-19 vaccine. They also said the pandemic’s impact on the industry is worse than the September 11 terrorist attacks.

In the second quarter, the airlines reported losses of $10 billion, with no hope of increased travel demand in the coming months. Many airlines have slashed their services to match weak travel demand caused by the pandemic.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to reach an agreement on Wednesday, but are still in talks over the next stimulus package.

American CEO told employees that he discussed with Mnuchin late Wednesday and told him that there was room for a furlough reversal if lawmakers reach an agreement over the next stimulus package. Although, it still remains unclear how long the furlough will last.

“I am extremely sorry we have reached this outcome,” Parker said in a memo. “It is not what you all deserve, it is a privilege to advocate on behalf of the hardworking aviation professionals at American and throughout the industry and you have my assurance that we will continue to do so in the days ahead.”

Airlines are cutting jobs through forced layoffs, furloughs, leaves of absence, and voluntary buyouts to cut airline labor bills by all means.