Despite the looming threat of airline layoffs starting later this week, American Airlines CEO Doug Parker said on Sunday he is still hopeful that Congress will reach agreement on a new round of coronavirus stimulus that would provide help. to the nation’s air carriers.
“There is tremendous bipartisan support for this. We have Republicans, Democrats, the administration all saying – knowing this is the right program, that it makes sense, that it should indeed be extended because airline employees provide critical infrastructure. “Parker told CBS ̵
US AIRLINES MAKE AN URGENT APPEAL FOR A NEW TERMINATION AT THE TIME OF WORK
Parker’s high hopes come as Congress has been in a bind for over a month on additional stimulus, leading many airlines to seek other alternatives to prepare for the worst as the federal government’s $ 25 billion bailout expires on 1st. October, which is when airlines can start firing employees.
American announced in a statement Friday that it secured $ 5.5 billion in additional funding awarded under the CARES Act as it prepares to withstand the pandemic without further stimulus, following a similar move by United. Meanwhile, competitor Delta Airlines said it would reject the CARES Act loan and mortgage its frequent flyer program, SkyMiles.
|UAL||UNITED AIRLINES HLDG.||34.20||+1.46||+ 4.46%|
|FROM||DELTA AIR LINES INC.||29.78||+0.77||+ 2.65%|
Without the new round of stimuli, however, Parker warned that the layoff of some 100,000 aviation workers across the industry is still inevitable and that once those permits begin, the ability to “continue to provide the services needed to pull out the economy from this will be severely hampered. “
While President Trump floated using an executive order to help airlines, Parker said he would prefer the long-term solution that would come from legislation passed by Congress.
“There’s certainly not a lot of time, but there is enough time,” Parker said. “We just need them to come together and do what’s best for America and our country and certainly for the airline business.”
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Parker’s call to action for a new stimulus deal comes as the ailing airline has seen “gradual improvement,” which it believes can be accelerated by lifting restrictions related to the coronavirus.
“A vaccine would certainly be really useful. But in the meantime, you know that quarantines go away, that companies get people back to the office, back to work,” Parker said. “This kind of thing has a huge impact on the need to travel by plane.”
|AAL||AMERICAN AIRLINES GROUP INC.||12.29||+0.52||+ 4.42%|
According to Parker, American’s revenue is expected to decline by about 75% in the third quarter and 65% in the fourth quarter.
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