American Airlines CEO Warns More Cities May Lose Flights
The COVID-19 pandemic has decimated air travel demand this year, causing airlines to dramatically slash their schedules. Despite these service cuts, small cities were able to retain vital air service, thanks to CARES Act rules requiring airlines that accepted payroll support to -- with very limited exceptions -- maintain service to all domestic destinations in their route networks.
Unfortunately, negotiations for a follow-up pandemic relief bill that might include additional airline payroll support have been progressing very slowly. For now, airlines are on their own. Meanwhile, the restrictions on service cuts expired at the end of September.
American Airlines (NASDAQ: AAL) responded by dropping about a dozen small cities from its route map last week. Now, management is warning that without additional aid, more cuts are likely.
Source Fool.com
