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American eyes cuts as bailout ends

written by Sandy Milne | August 14, 2020

File image of an AA tail (Source: American Airlines).

American Airlines is reportedly considering cutting flights to up to 30 US cities once “strings-attached” federal funding expires at the end of next month.

Speaking to CNBC on condition of anonymity, an AA insider revealed that the airline may scrap service to a number of destinations it has been required to serve as a condition of accepting $5.8 billion in CARES funding.

While American’s plans were first reported by the outlet on Thursday, they have since been confirmed by the Associated Press and The Dallas Morning News.

Though the source didn’t point to particular cities set to lose service, they told CNBC the changes “could appear in schedules as early as next week”.

The US Department of Transportation (DoT) was required to inform airlines by 1 August if the government planned to extend the minimum service requirements.

“The department did not propose to extend the obligations, but will use the authority in the CARES Act to monitor ongoing access by the travelling public to the national air transportation system,” a DOT spokesman said.

“The department is also prepared to implement any new provisions of law in this area if enacted by Congress.”

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