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Bloomberg
Two of the US’s biggest airlines are warning workers that the unprecedented loss of customers may leave both as smaller companies in the future, imperiling the nation’s airline jobs even after the government steps in with billions of dollars to help the industry weather the coronavirus pandemic.
Top executives at Delta Air Lines Inc and United Airlines told their combined 187,000 employees that they won’t impose furloughs or pay cuts before September 30 to comply with a six-month worker-protection period mandated by a federal rescue package.
The House passed the $2 trillion aid bill and sent it to President Donald Trump, who signed it. The package includes $50 billion for US passenger airlines in both loans and grants, primarily aimed at protecting airline jobs. But that help only goes so far.
“The global economy has taken a big hit, and we don’t expect travel demand to snap back for some time,†United Chief Executive Officer Oscar Munoz and President Scott Kirby wrote to employees.
Travel demand probably won’t return to pre-pandemic levels anytime soon, given the huge impacts to the global economy and an enormous spike in US unemployment claims. United said it’s tried to model possible financial outcomes for 2020 and 2021, but has little confidence in the conclusions because there’s no precedent for the steepness of the drop in demand.
Delta CEO Ed Bastian urged more employees to take voluntary leave as the Atlanta-based carrier parks roughly 600 planes and winds down most of its capacity in April and May. To date, 21,000 Delta employees have applied for the leave.