American Airlines says 13,000 jobs saved following Covid relief bill passing

‘All US-based American Airlines team members will continue to receive pay and benefits through 30 September, 2021’

American Airlines has informed 13,000 employees who received furlough notices that they can now "tear them up" following the US House passing President Joe Biden's $1.9tn American Rescue Plan.

"For our 13,000 colleagues who received Worker Adjustment and Retraining Notification (WARN) notices last month, those are happily cancelled – you can tear them up!" wrote CEO Doug Parker and President Robert Isom in a letter to employees.

Congress passing the American Rescue Plan provided businesses like American Airlines with necessary funding through the Payroll Support Program (PSP), therefore preventing the company from needing to furlough the 13,000 employees.

President Joe Biden said he would be signing the American Rescue Plan into law on Friday after it passed successfully through the Democratic-run House and Senate.

"It will extend the commitment that all US-based American Airlines team members will continue to receive pay and benefits through 30 September, 2021," the letter continued.

Read more: Follow live updates from the Biden administration

Prior to the passage of the bill, the 13,000 employees would be furloughed starting on 1 April.

Airlines in total got a $15bn boost following the passage of the American Rescue Plan. The airline industry was one set of businesses targeted given how much traveling has depleted in the last year due to the pandemic.

Other industries have also celebrated the passing of the American Rescue Plan on Wednesday.

The restaurant and bar industry will receive $28.6 billion for the Restaurant Revitalization Fund, which provides debt-free support to restaurants, bars, and other similar businesses that assist in covering expenses like payroll, mortgage, rent, and utilities.

"Today Congress spoke with one voice in support of the restaurant industry. The Restaurant Revitalization Fund will keep doors open in restaurants large and small in every community," said Sean Kennedy, National Restaurant Association executive vice president of public affairs.

The alcohol industry, another industry deeply impacted during the pandemic, also celebrated the additional funding.

"Our nation's restaurants, bars and distilleries are in desperate need of relief, and this bill is a great place to start," the Distilled Spirits Council said in a statement.

Some of the general public would also receive $1,400 stimulus checks, which could hit bank accounts as early as next week after Mr Biden signs the bill on Friday. Experts have anticipated these stimulus checks will encourage consumer spending and help fuel the economy.