50 F
Fort Worth
Friday, December 4, 2020
How Recent Political Changes Will Impact Your Bottom Line
Aviation American considering cutting flights to many smaller cities

American considering cutting flights to many smaller cities

Other News

British Airways, American Airlines plan voluntary COVID-19 testing plan

By DANICA KIRKA Associated Press LONDON (AP) — British Airways said Tuesday that it will start testing passengers flying from the U.S. to London's Heathrow...

American, Southwest, Alaska add to airline loss parade in 3Q

By DAVID KOENIG AP Airlines Writer DALLAS (AP) — Airlines are piling up billions of dollars in additional losses as the pandemic chokes off air...

Unfriendly skies: Airline workers brace for mass layoffs

By TOM KRISHER and CATHY BUSSEWITZ AP Business Writers DETROIT (AP) — The worries are growing for United Airlines flight attendant Jordy Comeaux. In a few...

Airline denies mom and son, 2, after he refused to wear mask

PORTSMOUTH, N.H. (AP) — A New Hampshire woman was not allowed to stay on an American Airlines flight with her 2-year-old son because he...

By DAVID KOENIG AP Airlines Writer

DALLAS (AP) — American Airlines is planning to drop flights to up to 30 smaller U.S. cities if a federal requirement to continue those flights expires at the end of next month, an airline executive familiar with the matter said Thursday.

American agreed to keep serving those smaller cities as a condition of receiving $5.8 billion in federal payroll help this spring. However, the money and the requirement to serve those destinations both expire Sept. 30 unless they are extended.

The move by American could put more pressure on Congress and the White House to give passenger airlines another $25 billion for labor costs. Airline unions and the airlines, which are struggling with a steep downturn in revenue as the pandemic undercuts air travel, are lobbying Congress for the money.

American is telling the federal government that if relief money is extended, it won’t drop cities, but if the money is not extended, it will, said Brett Snyder, a travel agent who writes about the industry at CrankyFlier.com.

“This isn’t an idle threat,” and it “is going to happen at all the network carriers,” Snyder said, referring to the biggest airlines.

Other airlines declined to comment immediately on their plans. An airline trade group said carriers need help because the COVID-19 pandemic continues to damage the industry.

“Demand for air travel has not returned as anticipated,” said Katherine Estep, a spokeswoman for the group, Airlines for America. “Without additional federal aid, U.S. airlines will be forced to make very difficult business decisions, which could include announced furloughs and reductions in service.”

The American Airlines executive did not detail which cities could lose service but said some are served only by American. They are not cities whose air service is subsidized under the Essential Air Service program.

The changes could appear in schedules as early as next week if there is no progress toward more relief for airlines from Washington, the person said. The executive spoke on condition of anonymity to discuss planning that has not been made public. American’s plans were first reported by CNBC.

In March, Congress and President Donald Trump approved up to $50 billion for passenger airlines, including $25 billion in grants and loans to help cover labor costs through September.

The idea was that the virus outbreak might subside enough by fall for the airlines to stabilize on their own. However, U.S. air travel has recovered much more slowly than hoped.

After falling 95% in April, air travel in the U.S. has remained down more than 70% in August, compared with a year ago, according to Transportation Security Administration figures. Combined, the nation’s four biggest airlines — American, Delta, United and Southwest — lost more than $10 billion in the second quarter, and the third quarter is likely to be only modestly better.

Airlines and their labor unions have been lobbying for the money to be included in a new round of pandemic relief to prevent layoffs in the industry until next April. They have lined up support from more than half the members of the House, including more than two dozen Republicans, and from more than a dozen Republican senators.

Trump spoke favorably of helping airlines when asked about the issue at a news briefing last week.

“Obviously the airline business is not doing very well,” he said. “I would be certainly in favor. We can’t lose our transportation system.”

close

Oh hi there 👋 It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

close

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Iconic Fort Worth retail/office center to be represented by Vision

Vision Commercial Real Estate will now be representing one of Fort Worth’s iconic and historic retail/office locations, the Ridglea Village retail center at 6100 & 6040...

Optimism growing for COVID relief bill as pressure builds

By ANDREW TAYLOR Associated Press WASHINGTON (AP) — Optimism about delivering long-sought COVID-19 relief is building on Capitol Hill after additional rank-and-file lawmakers voiced support...

Legendary 6666 Ranch goes on the market for $192.2M

The legendary 6666 Ranch (pronounced Four Sixes) is up for sale. Lubbock-based land brokerage and appraisal firm Chas S. Middleton and Son has listed the...

Southwest warns nearly 7,000 workers of possible furloughs

By DAVID KOENIG AP Airlines Writer DALLAS (AP) — Southwest Airlines warned nearly 7,000 workers on Thursday that they could lose their jobs unless labor...

MedStar and Texas Health Resources to donate ambulance and supplies to Fort Worth Sister City Toluca, Mexico

Toluca, Mexico, capital of the State of Mexico, is the center of a rapidly growing urban area and the fifth-largest city in Mexico, home...