American Airlines to cut service to 30 cities when federal funding expires
American Airlines is set to slash its network to at least 30 cities as soon as federal CARES Act bailout funding ends.
As it stands, funding is due to expire at the end of September and dozens of flights to smaller cities will be axed.
American received $5.8 billion in CARES Act funding which was conditional on maintaining pre-pandemic flight coverage and not laying off workers.
This requirement runs out on 30 September.
The airline hasn’t disclosed which cities it will likely eliminate service from.
Some of the cities will lose connectivity as the airline said some of the routes are only served by American, a company official told CNBC.
"Demand for air travel has not returned as anticipated. Without additional federal aid, US airlines will be forced to make very difficult business decisions, which could include announced furloughs and reductions in service," said Katherine Estep, spokesperson for trade group, Airlines for America.
Airlines have pleaded to Congress for further federal funding for another six months.
President Trump has been in favor of extending relief to the airline industry and there is hope a deal can be reached well before current funding expires.
Written by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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