American Airlines will cut 19,000 jobs in October when the CARES Act ends.
American Airlines has warned 19,000 job cuts will take place in October as the Covid-19 pandemic continues to weigh on air travel.
The airline says the US government can stop the job cuts if it bails out the airline again.
Earlier this year, American received $25 billion in federal aid, as part of the $2.2 trillion CARES Act.
That bailout came with several conditions, one of which was that airlines would keep on 90% of their staff through September.
“The only problem with the legislation is that when it was enacted in March, it was assumed that by September 30, the virus would be under control and demand for air travel would have returned,” said Doug Parker, CEO of American Airlines Group.
“The one possibility of avoiding these involuntary reductions on October 1 is a clean extension of the PSP,” he added.
While a six-month extension to payroll aid for the airline industry has received bipartisan support, Congress has struggled to reach an agreement.
Texas-based American has argued that the industry is essential to a quick economic recovery.
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