American Airlines chief 'confident' federal payroll aid will be extended

A current funding deal that protects employees jobs is due to expire on Thursday

American Airlines chairman and chief executive Doug Parker speaks to reporters at the White House following a meeting of airline chiefs with the US government earlier this month. It secured a $5.5bn loan last week to help it cope with the fallout from the pandemic. AFPShow less

American Airlines chief executive Doug Parker said there’s sufficient time for the US Congress to agree on extending $25 billion (Dh25bn) in federal aid that would prevent layoffs for tens of thousands of airline workers on October 1.

American will continue urging Congress to resolve a stalemate and approve the aid as part of a broader economic stimulus package, Mr Parker said on Sunday in an interview on CBS's Face the Nation. The approaching deadline could spur action, he added.

“I’m confident” the payroll aid will be extended, Mr Parker said. “There’s certainly not much time left, but there’s enough time. Often times, a deadline like this is what is needed to get action. We’re hoping that is the case.”

Layoffs would shrink the US airline industry, seriously hampering its ability to rebuild its service once demand and the economy improve, he said.

There has been some increase in passenger demand, Mr Parker said, echoing comments made by several other carriers. Still, American expects its third quarter revenue to fall 75 per cent from a year earlier, and drop 65 per cent in the fourth quarter.

Speaker Nancy Pelosi said on CNN's State of the Union that there's a chance she and Treasury Secretary Steven Mnuchin can still reach a deal on a coronavirus stimulus package, and that Democrats will unveil a new "proffer" shortly.

“Our plan is to get Congress and the administration to come together and get a relief bill passed,” Mr Parker said. “There is enormous bipartisan support for it.”