American Airlines Group Inc.is implementing job cuts to its corporate team after reporting a loss in the third quarter, according to an inside source cited by Bloomberg.
The layoffs will mostly impact mid-level and support employees at the airline’s headquarters in Fort Worth, Texas and are expected to begin this week.
In a statement, an American Airlines spokesperson said, “We are making a small reduction to our management and support staff team to align with the current workload. The majority of these positions are located at our Fort Worth headquarters and will help us improve our performance and efficiency across the entire organization.
The announcement caused American Airlines’ stock to drop by 4. 3% in New York trading at 1:07 p. m. The company’s stock has declined by 24% this year, while the S&P 500 has seen a 16% increase.
The decision to cut jobs comes after the airline reported an adjusted loss of 17 cents per share in the third quarter, which was lower than expected but significantly down from a 30-cent profit in the same period last year.
Data from aviation analytics firm Cirium shows that American Airlines had 102,674 employees in 2024, more than Delta Air Lines (100,924) and United Airlines (96,422).
American Airlines is not the only carrier in the industry to make cuts in response to financial challenges. Just last month, Air Canada reduced approximately 400 management positions, which accounts for about 1% of its total workforce, in an effort to streamline operations.
Earlier this year, Southwest Airlines announced its plans to cut 15% of its corporate team, marking the first significant reduction in the company’s 54-year history. In addition, Spirit Airlines, which is currently facing bankruptcy protection filings, has furloughed about 1,800 flight attendants and 270 pilots.
Unfortunately, American Airlines’ decision to layoff employees is reflective of a larger trend in the US economy. A recent report from Challenger, Gray & Christmas shows that nearly 950,000 job cuts have occurred across various industries through September, which is the highest number since the pandemic began.