American Airlines to stop Services to 15 Cities in October

American Airlines, on Thursday, said it plans to bring services to a halt in 15 small U.S cities that have a low demand. This would happen in October when the terms of federal aid expire. This would take off flights that are scheduled for nine destinations in a lot of states.

Some U.S carriers and the American Airlines that received a part of the $25 billion in federal payroll were required to keep a minimum level of service through September 30.

Currently, the Airline is the only carrier that is offering schedule service to nine of the airports where plans are being made for flights to be suspended. 

American Airline will suspend service in the following states 

  • -         Del Rio, Texas
  • -         Dubuque, Iowa
  • -         Florence, South Carolina
  • -         Greenville, North Carolina
  • -         Huntington, West Virginia
  • -         Joplin, Missouri
  • -         Kalamazoo/Battle Creek, Michigan
  • -         Lake Charles, Louisiana
  • -         New Haven, Connecticut
  • -         New Windsor, New York
  • -         Roswell, New Mexico
  • -         Sioux City, Iowa
  • -         Springfield, Illinois
  • -         Stillwater, Oklahoma
  • -         Williamsport, Pennsylvania.

Lawmakers have been urged by Airline Labor unions as well as executives of other carriers which includes American Airlines (AAL) to make available another $25 billion in payroll grants and loans to airlines. Lawmakers have not been able to agree on another coronavirus aid package that is likely to include additional aid for the airline, even though the initiative has received bipartisan support from the Congress.

American Airline stock chart - 

It was reported by CNBC last week that American Airlines has been working towards halting services to over 30 cities. The halting of its services would begin on October 7 and run through till November 3.

The selected airports were affected because they have not had sufficient demand and it is unlikely that they will pick up soon.

The coronavirus pandemic has largely affected demand for Air travel with the travel restrictions further worsening the case, as likely customers have been unable to move from one place to another which would see them in need of Airline services.

Though the number of people flying has increased with the easing of the lockdown a little, it is still considered weak.

It was revealed by Federal Data that the Transportation Security Administration screened an average of 708,684 people a day this month, which is down 71% from last year.

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