American Airlines CEO Calls Out United Airlines For Cutting Employee Hours

With all this money (how many billions?) we could start and finish building high speed rails and stop this domestic flying nonsence.

Doug is probably only saying this because his union contracts don’t allow for him to cut hours. Wall street didn’t seem all that happy with some of AA’s responses to their questions on the earnings call and so he’s probably going to take more flack when other airlines are cutting costs that he’s unable to do.

AA is just upset that United is taking all the steps to cut costs and being transparent about it. How the “AA defenders” refuse to see that they are not immune to the hurt that’s coming is delusional.

Delta and Alaska have also cut hours, but those cuts have mostly flown under the radar since they were implemented prior to CARES passage. The gap in understanding here is mostly between Congress and the public (what people think the bill does vs. what it actually does) since the bill as written allows for reduction in hours.

@ Pete -- No one is suggesting that American is immune to the problems. But I'm curious about what you're saying -- if Parker felt that he could reduce hours under the CARES Act, why on earth wouldn't he do so?

American is so leveraged it is unbelievable, 42% of analyst recommend selling American. I believe they are not being transparent.

While the news is unfortunate, I believe United is taking the right step. It is far better to be too cautious for the business to survive than to be arrogant and for Doug to watch his company go into bankruptcy AGAIN.
United’s stock is not performing ‘well’ but in line with DElta.

Just sad . If I were a United Airlines employee right now I would feel disgusted , alone , and completely abandoned . Scott Kirby only cares about himself and those in the higher decibels of power. "When people show you who they are.... " I believe Mr. Kirby for certain --

I disagree Lucky: cutting hours means you can save jobs. Check out what Widerøe did. They furloughed everyone 40%, and have as a result not let anyone have to go. It sure beats living off unemployment benefits which are usually a lot lower than full time pay. As travel picks up the company can increase hours again, benefiting more (if not all) employees. Also builds morale among the work force.

The whole CARES act forces carriers to bleed more money than they have to by making them fly empty planes to all destinations regardless of demand, and if they can’t reduce work hours that also carries enormous costs.

Loophole? Please, no one associated with cares act didn’t think about cutting hours? Let’s not insult our intelligence!

Oh, the airlines can cut the hours, but this just reduces the "forgivable" amount from the CARES ACT which means these airlines will have to payback the government with interest once the audit of hours worked is requested (which is a requirement for loan forgiveness).

Come September, UA and AK and other will have to give back some of what they accepted as a percentage of hours not worked. Kirby and other didn't read the fine print, Parker did.

I am deeply involved with PPP and CARES for clients so know the rules, UA is breaking the rules!

Wow - all the AA bashers on here suddenly praising United. Where are you when United finds loopholes to screw frequent flyers?

The rotten apple talking about the rotten orange.

Yes... Parker should focus on his airline... which has the highest debt between DL, UA, SW.... besides, he's cutting hours of PT from 25-30 hrs to 12-15 hours.... how is that any different?

Oscar was with Doug in Washington DC the entire time. Oscar and Scott also participated in the "design" of CARES admit relates to airlines, not just Doug.

Factor in the bad blood between Doug and Scott too.
United is doing what it has to do to survive.

Also remember, Ben (Lucky) doesn't even bother hiding his anti-United rhetoric any more.

Scott Kirby must testify. Drag his ass out in front of Congress and roast him. He has been a disaster for United since day one of his employment there.

United can continue to be slimy and try to skirt various rules and regulations. They can continue doing whatever they want. I will not fly them!

I'm waiting to see how many people Parker will lay off come Oct 1st. Wouldn't want to be low on the seniority list.

They can cut hours under the act. It just means the percentage of the forgivable loan changes.

This is the government’s fault. The airlines don’t deserve a bailout. This was a set up in the Senate, and the House was even more stupid to approve the Bill. Now why is anyone surprised what is happening?

With all the issues in front of AA, those from the pandemic and those self imposed, Parker should quit worrying about United and fix his own problems.

"With all this money (how many billions?) we could start and finish building high speed rails and stop this domestic flying nonsence."

I assume you are being sarcastic? We see how well that concept is working in California.