American Airlines to cut hundreds of jobs at Fort Worth Headquarters in Texas following Q3 loss
American Airlines Group Inc., Bloomberg reported, citing a person familiar with the matter. is laying off hundreds of corporate employees after reporting a loss in the third quarter.
The cuts will primarily affect mid-level management and support staff at the airline’s headquarters in Fort Worth, Texas, and are scheduled to begin this week.
“We are making a small reduction in our management and support staff team that is appropriate for the work we do today,” an American Airlines spokesperson said in a statement. “The positions are located primarily at our Fort Worth headquarters and will help us optimize our performance and be more efficient throughout the organization.”
Stocks fell after the announcement
Following news of the layoffs, American Airlines shares fell 4.3% on the New York Stock Exchange at 1:07 p.m. The stock is down 24% so far this year, compared to a 16% gain in the S&P 500.
Third quarter loss sparks action
The layoffs came after the company reported an adjusted loss per share of 17 cents in the third quarter; That figure was smaller than Wall Street’s estimates but below the 30-cent profit a year earlier.
American employed 102,674 workers in 2024, according to aviation analytics firm Cirium; that’s more than Delta Air Lines (100,924) and United Airlines (96,422).
Industry-wide cost reduction
The layoffs follow similar moves in the U.S. airline industry. Last month, Air Canada cut nearly 400 management positions (roughly 1% of its total workforce) as part of efforts to streamline operations.
Earlier this year, Southwest Airlines announced plans to cut 15% of its corporate workforce; this was the first major reduction in the airline’s 54-year history. Spirit Airlines, struggling with bankruptcy protection filings, has furloughed nearly 1,800 flight attendants and 270 pilots.
Layoffs increase across the US
There are also widespread layoffs throughout the US economy. A report from Challenger, Gray & Christmas shows nearly 950,000 layoffs across industries through September; This is the highest figure since the pandemic.
