
Bloomberg
American Airlines Group Inc plans to cease flights to 15 smaller US cities because of low demand, beginning the first phase of dropping markets from its network as the coronavirus pandemic keeps millions of flyers off planes.
The reductions are effective from October 7, shortly after the expiration of service requirements tied to federal payroll aid, American said in a statement. Flights will end to such destinations as Springfield, Illinois, and New Haven, Connecticut, the carrier said. Additional changes are planned in the coming weeks.
American’s move heralds a likely wave of cutbacks by US airlines if the government doesn’t extend a new financial lifeline.
Carriers that accepted federal assistance to help cover payroll costs had to agree to maintain minimum service levels to locations they were flying to as of March 1.
While the Transportation Department later authorised a halt to some flights because of sustained low demand, the broader restrictions are set to expire on October 1.
Lawmakers are considering a second round of aid, but progress has been stymied by a political stalemate over another stimulus package for the US economy.
“The airline will continue to re-assess plans for these and other markets as an extension of the Payroll Support Program remains under deliberation,†American said.
The carrier will release its updated October schedule on August 29 and its November plan by late September. For now, the first round of suspensions are only in place through November 3.
Travel demand in the US remains at 25% to 30% of last year’s levels, based on passengers screened by the Transportation Security Administration at domestic airports.