American Airlines plans to lay off or furlough as many as 25,000 workers this fall, and Tulsa may feel it in a big way.
The Tulsa World reports American is expected to furlough more than 1,000 of its 5,400 employees in Tulsa sometime around Oct. 1. Another 114 could be laid off because they don’t have a worker below them they can bump under terms of their bargaining agreement.
Airline executives say passenger revenue last month was down 80% from June 2019, and they’re seeing demand slow again as infection rates go up.
"We hate taking this step, as we know the impact it has on our hardworking team members. From the time the CARES Act was signed in March, we had a stated goal of avoiding furloughs because we believed demand for air travel would steadily rebound by Oct. 1 as the impact of COVID-19 dissipated," read a letter from American Airlines Chairman and CEO Doug Parker and President Robert Isom.
The Tulsa Regional Chamber said it would help displaced employees any way they can.
"While this is an extremely difficult time for the company and the entire airline industry, we remain hopeful for a rebound in travel. American Airlines' commitment to Tulsa remains, and we're encouraged by the company's recent strategic actions, such as its partnership with JetBlue," Senior Vice President of Economic Development Bill Murphy said in a statement.
American and JetBlue announced a passenger sharing agreement on Thursday.
American is offering voluntary extended leave and early retirement programs for some employees.
