American Airlines Cuts: Jobs, Service Likely to Be Affected

Today, it was announced that anticipated American Airlines cuts could mean a loss of 14,000 jobs across the fleet’s workforce as the struggling airline attempts to restructure its finances.

Although workers were top on the chopping block for American Airlines, the stunning number of employees won’t be the only ones to feel the pain of American Airline cuts. Unions plan to fight the losses for workers (which the airline announced early Thursday), but flyers outside hub cities like Chicago, Miami, Dallas, Los Angeles and New York can expect service on American Airlines to get a bit less convenient, frequent and perhaps more expensive as customers scramble for seats.

CBS News travel editor Peter Greenberg appeared on CBS This Morning to discuss what American Airlines cuts may mean for the airline’s workforce as well as travelers who rely on the service for business and leisure jaunts. Greenberg said that unions are unlikely to take American Airlines cuts lying down:

“You lose 2,100 people, that means a lot of the jobs go out of the country… Right now, I wouldn’t be worried about that… They’re trying to terminate the pension plan, which will be a bone of contention and battleground with the union. But more importantly than that, they’re sort of circling the wagons.”

When asked if American Airlines cuts are likely to signal more significant troubles for the carrier, Greenberg said:

“They have a lot of cash in the bank, they’ve got the strong alliance… and a number of people [they] might end up merging with or consolidating with. In the short-term, I don’t think it’s a problem; in the long-term, you may see a different airline, but I don’t think they’re going anywhere.”

Are you a frequent flyer concerned about American Airlines cuts?