American Airlines furloughed
American starts phased return of furloughed employees. Credit: Steve Lynes with Flickr.

US carrier American Airlines has reportedly started recalling its furloughed employees after the additional payroll relief package was passed by Congress.

Reuters reported citing a staff memo released by American as saying that the return will be done in a phased manner.

Earlier this week, US Congress passed a pandemic aid package of nearly $900bn. It includes $15bn in extra federal aid for US airlines. The bill is yet to become law.

The federal aid is expected to safeguard more than 32,000 jobs and will prevent airlines from furloughing staff through 31 March 2021.

In October, American furloughed nearly 19,000 employees after talks to extend the CARES Act Payroll Support Program (PSP) before the deadline failed to materialise.

The carrier is expected to receive approximately $3bn from the latest payroll package, Reuters reported citing people familiar with the development.

American chief executive Doug Parker and president Robert Isom were quoted as saying: “While pay and benefits will be restored right away, people will be asked to return to the operation in phases.”

The new aid package has laid out conditions, such as airlines repaying 30% of the payroll grants over time, government warrants, and re-establish certain routes. It also lays limits on executive compensation and share buybacks.

Meanwhile, United Airlines expects the return of furloughed workers to be ‘temporary’.