U.S. airlines are laying off thousands of staff as federal relief ends

American airlines have begun laying off thousands of workers as negotiations on a new financial aid plan continue in Congress.

American Airlines said it was laying off 19,000 workers and United Airlines 13,000.

Carriers – severely damaged by the coronavirus pandemic – say they are ready to overturn decisions if more financing is found.

Airlines have received billions of dollars from the federal government.

Congress accepted the aid agreed earlier this year As part of the Coronavirus Aid, Relief and Economic Security Act [Cares Act]. Carriers are required to lay off workers until October 1.

Airlines around the world have fallen sharply due to the epidemic.

In a letter to staff announcing the layoffs, Dow Parker, chief executive officer of American Airlines, said: “We are very sorry that we have reached this result.

In a message to its employees on Wednesday, United Airlines said it was appealing to “our elected leaders to compromise, make a deal now and save jobs”.

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“In a sustained effort to give the federal government every opportunity to take action, we have made it clear to the leadership of the administration, Congress and our union partners if the CARE Act payroll support program is expanding. Over the next few days.”

It added: “To our departed 13,000 family members: Thank you for your dedication and we look forward to welcoming you back.”

The dismissals are putting pressure on Treasury Secretary Steven Munuchin and House Speaker Nancy Pelosi as they try to agree on a further relief plan for the struggling U.S. economy.

Democrats controlling the House are pushing for a $ 2.2tn (7 1.7tn) package, while the White House wants to keep it at 6 1.6tn. In a recent proposal there are b 20 billion for struggling airlines.

House Democrats discussed the stalemate on Thursday. However, the Senate adjourned until Monday evening, Reuters reported, indicating that the end to the stalemate was not near.

After a 50-minute phone call with Mr Munuchin on Thursday afternoon, a spokesman for Ms Pelosi said “there is still a long way to go on key areas”.