American Airlines (AAL) is cutting its corporate workforce with hundreds of jobs expected to be eliminated at the carrier’s Fort Worth, Texas headquarters.
According to a source cited by Bloomberg, the job cuts will be predominately in mid-management and support staff affecting areas such as finance, technology, commercial, and communications.
The jobs cuts have not been attributed to any financial decisions by the carrier, although American (AAL) did report a quarterly loss of $0.17 per share in Q3.
Additionally, while the major carriers have yet to experience any direct financial impact from the government shutdown, a dearth of air traffic controllers has snarled traffic at major airports with more than 5,000 flights between U.S. airports delayed on Sunday, more than three-quarters of which were attributed to staffing shortages.
On the company’s most recent earnings call, American Airlines (AAL) CEO Robert Isom said that while the carrier is taking necessary steps to mitigate any impact, there have been some “difficulties in terms of operating delays at issues with air traffic control” at one of its major hubs, Reagan National Airport in Washington, D.C.
American Airlines (AAL) shares are down more than 4% Tuesday, leading to comparable losses for Delta Air Lines (DAL) and United Airlines (UAL).