American to furlough 19,000 as clock runs out on airlines

American Airlines will begin furloughing 19,000 employees on Thursday after lawmakers and the White House failed to agree on a broad pandemic-relief package that includes more federal aid for airlines.

CEO Doug Parker said Wednesday night that if Washington comes up with a deal for $25 billion in airline aid “over the next few days,” American will reverse the furloughs and recall the employees.

The move by American represents the first — and likely the largest — involuntary jobs cut across the industry in coming days. United Airlines has indicated it could furlough nearly 12,000 workers.

Airline employees and executives made 11th-hour appeals this week to Congress and the Trump administration to avert furloughs when a federal prohibition on layoffs — a condition of an earlier round of federal aid — expires Thursday.

The passenger airlines and their labor unions are lobbying for taxpayer money to pay workers for six more months, through next March. Their request is tied up in stalled negotiations over a larger pandemic-relief measure.

Industry officials acknowledged that prospects were bleak for action before Thursday’s deadline. They said, however, they were cheered that the House this week included airline payroll help in a $2.2 trillion relief plan that moved closer to Republicans' preference for a lower price tag.

“It provides a glimmer of hope that something will get done,” said Nicholas Calio, president of the trade group Airlines for America.

Treasury Secretary Steven Mnuchin said Wednesday night that the administration wants to help hotels, airlines and schools. He said he was talking with House Speaker Nancy Pelosi but hinted that the White House doesn't want to go above about $1.5 trillion — $700 million below the House Democrats'...