American Airlines Group Inc. is laying off hundreds of corporate employees after reporting a third-quarter loss, Bloomberg reported, citing a person familiar with the matter.
The cuts will primarily affect mid-management and support staff based at the airline’s headquarters in Fort Worth, Texas, and are set to begin this week.
“We’re making a small reduction to our management and support staff team to right-size for the work we do today,” an American Airlines spokesperson said in a statement. “The positions are primarily at our Fort Worth headquarters and will help us optimize our performance and become even more efficient across the organization.”
Stock drops after announcement
Following news of the layoffs, American Airlines shares fell 4.3% at 1:07 p.m. in New York trading. The stock has declined 24% so far this year, compared to a 16% rise in the S&P 500.
Third-quarter loss triggers action
The layoffs come after the carrier posted an adjusted loss of 17 cents per share in the third quarter, smaller than Wall Street’s projections but down from a 30-cent profit a year earlier.
According to aviation analytics firm Cirium, American employed 102,674 workers in 2024 — more than Delta Air Lines (100,924) and United Airlines (96,422).
Industry-wide cost cutting
The job reductions follow similar moves across the US airline industry. Last month, Air Canada trimmed about 400 management positions — roughly 1% of its total workforce — as part of efforts to streamline operations.
Earlier this year, Southwest Airlines announced plans to cut 15% of its corporate workforce, marking the first major reduction in the carrier’s 54-year history. Spirit Airlines, struggling with bankruptcy protection filings, has furloughed about 1,800 flight attendants and 270 pilots.
Layoffs surge across US
The broader US economy is also witnessing widespread job cuts. A report from Challenger, Gray & Christmas shows nearly 950,000 layoffs across industries through September — the highest since the pandemic.