United Plans 16,000 Furloughs As Airlines Cut Jobs During Pandemic Downturn

A United Airlines airplane is seen at eviction at Denver International Airport on July 30. The airline industry has been struck hard by the pandemic.

Daniel Slim/AFP through Getty Images

conceal caption

toggle caption

Daniel Slim/AFP via Getty Images

A United Airlines plane is seen at eviction at Denver International Airport on July 30. The airline company market has been hit hard by the pandemic.

Daniel Slim/AFP via Getty Images

United Airlines will be putting 16,370 workers on uncontrolled, indefinite furlough at the start of October, unless more aid emerges from the federal government, the business announced Wednesday.

Together with some 7,400 voluntary departures, the airline is cutting its workforce by more than 25%. American Airlines recently revealed 19,000 furloughs and layoffs, while Delta cut its labor force by 20% through buyouts.

The help money and the task securities expire Sept. 30.

In a recent profits call, United reported profits were down more than 87% compared to last year.

The airline company market has been clobbered by the pandemic. And airline companies are intentionally keeping lots of seats empty– a move that promotes safety, however harms their bottom line.

Airline companies received a lifeline from the federal government this spring, in the type of $25 billion in help licensed through the CARES Act. The business anxiously looked for cost savings– through voluntary furloughs and retirements, buyouts, schedule-sharing and other measures– but, as a condition of that help cash, were prohibited from laying off staff.

Your home passed an expense that would extend the payroll assistance program that has actually been helping the airline companies. The Senate has not.

The airline company market has been clobbered by the pandemic. While air traffic has actually risen from its floor this spring, it stays far listed below pre-pandemic levels. And airline companies are intentionally keeping many seats empty– a relocation that promotes security, however injures their bottom line.

” The pandemic has actually drawn us in deeper and lasted longer than nearly any specialist predicted, and in an environment where travel demand is so depressed, United can not continue with staffing levels that considerably go beyond the schedule we fly,” the company composed. “Sadly, we dont anticipate demand to go back to anything looking like regular until there is a widely readily available treatment or vaccine.”

Together with some 7,400 voluntary departures, the airline is cutting its workforce by more than 25%. Its barely alone. American Airlines recently announced 19,000 furloughs and layoffs, while Delta cut its labor force by 20% through buyouts.

In its statement of furloughs, United advised staff members to write to their representatives to support the extension, calling it “the one thing that would prevent involuntary furloughs on October 1 and hopefully postpone any potential effect on employees until early 2021.”