Even as American Airlines pivots to be more premium, and to talk about the need to generate revenue rather than just cut costs, the cost-cutting continues. Perhaps that’s the required trade to get buy-in from the CFO, whose reputation for never spending a dollar is even greater than that of his long-time predecessor in the role. The money for better coffee has to come from somehwere.
They’ve cut customer service counters at Washington’s National airport after cutting customer service hours at Chicago O’Hare.
And now, according to aviation watchdog JonNYC, they’re taking an axe to headquarters staff.
so far I'm hearing:
"I heard 4% payroll expenses for mainline and support staff. Reduction last week was supposed to announced today"
— JonNYC (@xJonNYC) November 3, 2025
He offers some color on layoffs at hubs, as well:
another take:
"-Rumor- that’s been spreading internally is 500 people, mid to senior management all from DFW"
(this one very unconfirmed)— JonNYC (@xJonNYC) November 3, 2025
again, consider all hearsay and 100% unconfirmed:
"A total of 12 managers above the wing (customer service managers and allocators) have been walked out between yesterday and today at CLT. No warnings. Just pure walk outs. Anticipating 2-4 more customer service managers to be…
— JonNYC (@xJonNYC) November 4, 2025
"worth noting that the layoffs impacted IT along with revenue accounting and "Customer Success" (formerly customer relations) in PHX. Basically the remaining 3 PHX non-ops holdouts from the US/HP days."
— JonNYC (@xJonNYC) November 4, 2025
I’d add that some of this appears to be implementing the plan that I reported on in May to outsource up to 30% of IT to Hyderabad, however the narrative appears to be that they’re cutting post-pandemic bloat. And there’s certainly been hiring post-Covid. Some departments probably grew too much, after shrinking too much early in the pandemic, while others really haven’t.
In May 2020 I had the scoop that American would terminate 30% of its management and support staff.
- They were under an obligation from the pandemic CARES Act not to furlough workers. Government subsidies were meant to ‘keep workers connected to airlines’ so airlines would be ready to fly when passengers returned.
- However they used the threat of those subsidies ending to get 30% of staff to ‘voluntarily’ resign. If they agreed to leave they’d keep some health care and travel benefits. If they didn’t they’d be fired once the subsidies lapsed. (They lobbied for and achieved two more rounds of subsidies – but after they shed workforce.)
In that round the airline simply didn’t do a great job of distinguishing top performers worth retaining from those they’d prefer to lose. Hopefully, from an airline management, operational and quality standpoint, they’re doing better at it this time.
Isom in 2023: $31,400,000 compensation; average pay for flight attendant at AA: $47K. Save money on those executives in management; spend more on better pay for actual front-line workers, flight crews, ground staff… and Gary’s favorite: Cleaners. Clean. Your. Planes. Pay. Your. Workers.
Corporate managers are useless leeches and often redundant. Good riddance
I wonder if a judge is going to order AA to retain and pay them. It seems the judiciary (the real kings) is putting its fat fingers into everything these days.
@Michael… So now the Judges are the bad guys?
This is the future. Getting rid of workers, using more AI/technology, awhile claiming allegiance to diversity and equity. Glad I’m retiring in a few years and won’t have to deal with this farce.
@1990 American does pay their workers. Their pay is industry leading in basically every department. The problem is that American cannot afford to pay the wages they are paying. They raised the bar on pay for the pilots, flight attendants and mechanics but they make no money.
@Patrick… your comment has “Lack of (under)Standing”.
Just saying, lately (since Jan 20, 2025) judges love to rule on questionable areas of jurisdiction.
AVNerd,
actually, at least post covid, DL has led the industry in raising pay for employees across its company. DL happens to have much greater employee and revenue generating efficiency. DL can afford to do what inflicts pain for other airlines. AA has had way too many employees for the amount of revenue it generates and this effort is part of what has to happen.
When even WN breaks the sacred “no layoffs” barrier, you realize that efficiency has to matter and that means trimming the fat every now and then.
If American Airlines were to reduce its C-suite executives by 30% and restore customer service at airports, it would likely result in greater passenger satisfaction