American Airlines to cut some positions by 30%

American Airlines says it will cut management and support staff by about 30 percent.

And it may have to cut frontline employees too.

That's according to a letter to employees made public on Wednesday (May 27).

It comes as all major U.S airlines prepare to restucture or make cuts over the global health crisis despite government payroll aid that bans involuntary job axing until September 30.

Competitor United Airlines has also said it will need to reduce its management and administrative staff by about 30 percent.

Once American has reduced its managment the letter says it will turn to flight attendants, pilots, and other front line workers.

They'll get options for voluntary leave or early retirement in a bid for American to avoid furloughs.

The company says nearly 40,000 employees have already opted for leave or retirement.

The airline also says it expects to fly roughly 100 fewer aircraft in summer next year.

Earlier on Wednesday CEO Doug Parker rejected speculation American or another major U.S. airline will have to file for Chapter 11 bankruptcy.

Video Transcript

- American airlines said it will cut management and support staff by about 30% and it may have to cut frontline employees too. That's according to a letter to employees made public on Wednesday. It comes as all US airlines prepare to restructure or make cuts over the global health crisis, despite government payroll aid that bans involuntary job axing until September 30th. Competitor United Airlines has also said it will need to reduce its management and administrative staff by about 30%.

Once American has reduced its management, the letter says it would turn to flight attendants, pilots, and other frontline workers. They'll get options for voluntary leave or early retirement in a bid for American to avoid furloughs. The company says nearly 40,000 employees have already opted for leave or taken retirement.

The airline also says it expects to fly roughly 100 fewer aircraft in summer next year. Earlier on Wednesday, CEO Doug Parker rejected speculation American or another major US airline will have to file for chapter 11 bankruptcy.