CHICAGO / WASHINGTON (Reuters) – Delta Air Lines can avoid involuntary leave in the fall after receiving interest from more than 15,000 employees for advance purchase packages, a person with knowledge of the matter said, even as other U.S. airlines are hearing alarm at jobs.
FILE PHOTO: Delta Air Lines passenger planes are parked due to flight reductions made to curb the spread of coronavirus disease (COVID-19), at Birmingham-Shuttlesworth International Airport in Birmingham, Alabama, USA. USA March 25, 2020. REUTERS / Elijah Nouvelage
Atlanta-based Delta is among the big US airlines that have been trying to encourage workers to leave voluntarily before the government’s ban on forced job cuts expires on September 30, when they warn they should be cut due to Depressed demand in the coronavirus pandemic.
The deadline for most Delta employees to accept early departure or early retirement packages was Monday.
Delta, which is due to present second-quarter results on Tuesday, declined to comment.
Because employment contracts require airlines to resign in reverse order of seniority, those who can encourage older people to leave could have generally lower labor costs as they prepare for a slow rebound.
Other U.S. airlines have warned that licenses are likely, and United Airlines issued warnings to approximately 45% of its front-line workers last week.
American Airlines was preparing to send warnings, along with early departure packages to encourage voluntary departures, this week, people familiar with the matter said.
Southwest Airlines Chief Executive Gary Kelly told employees Monday that he was concerned about the impact of a recent surge in COVID-19 cases and quarantines on already weak travel demand, saying the number of passengers it would have to triple by the end of the year to avoid job cuts.
“Although permits and layoffs remain our last resort, we cannot rule them out as a possibility obviously in this very bad environment,” Kelly said in a message to employees reviewed by Reuters. He added that an increase in travel cases and restrictions “are not positive developments for our business, and we are concerned about the impact on already weak travel demand.”
Southwest and United employees have until July 15 to request early departures.
In accordance with labor regulations, airlines must notify employees 60 days in advance of possible licenses. Not everyone who receives a notification will be fired.
Airlines are grappling with overcrowding and burning millions of dollars in cash every day, even as they face pressure to limit passengers on flights to allow for social distancing.
JetBlue Airways Corp said Monday it will extend the center seat lock on larger planes and aisle seats on smaller planes for flights through September 8. American and United are again booking flights at their maximum capacity, but informing customers if their flights will be full.
Reports by Tracy Rucinski and David Shepardson; Dan Grebler and Christopher Cushing edition
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