Biden Economy: American Airlines Cancels Layoffs As Stimulus Package Saves 13,000 Jobs

American Airlines will no longer have to lay off an estimated 13,000 employees following the passing of the latest stimulus package by Congress.

The airline industry will receive $15 billion out of the $1.9 trillion COVID-19 relief bill as well as an extension on the Payroll Support Program. The provision was expected to expire on April 1 as part of the Coronavirus Aid, Relief, and Economic Security Act.

On Wednesday, American Airlines President Robert Isom and CEO Doug Parker sent out a memo announcing that employees who received furlough notifications don’t have to worry about being out of work.

“For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily canceled – you can tear them up,” Isom and Parker stated.

Parker and Isom went on to express their gratitude to Congress for their aid throughout the pandemic.

“Since the start of the pandemic, lawmakers from both parties have recognized the essential work each of you undertakes, the critical infrastructure the American team provides to our country and the world, and the economic risks of a weakened U.S. airline industry,” the statement said.

“We are grateful for the support of our government leaders and their continued acknowledgment of all you do.”

American Airlines previously notified employees about potential furloughs as Congress struggled to pass the new stimulus package. However, the updated plan for pay and benefits to airline employees will extend through Sept. 30.

President Joe Biden is expected to sign the bill into law this week. Biden entered office with the travel industry losing about $500 billion due to the pandemic.

On Monday, the Biden administration was urged by travel and business groups to develop temporary credentials for travelers to confirm they have been tested and vaccinated.

With a sharp uptick in vaccinations, along with increased travel and growth for entertainment options, the stimulus is expected to strengthen the U.S. economy.

"The key engine of growth is going to be that powerful cocktail of both a healthier economy along with fiscal stimulus," Gregory Daco, Chief U.S. Economist at Oxford Economics, told National Public Radio.

Daco expects the economy in 2021 to grow by 7% and add 7 million jobs.