FILE PHOTO: An employee of Southwest Airlines Co. wears a protective mask while assisting a passenger at Los Angeles International Airport (LAX) in Los Angeles, California, USA, May 23, 2020. REUTERS / Patrick T. Fallon
CHICAGO / WASHINGTON (Reuters) – 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 and He said the number of passengers would need 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.”
United Airlines began sending license warnings to about 45% of its frontline workers last week, and American Airlines was preparing to send warnings, along with early departure packages to encourage voluntary departures, this week, familiar people said with the matter.
Southwest and United employees have until July 15 to request early departures. No US airline can suspend staff before October 1, under the terms of a government bailout, and must notify employees 60 days in advance of possible licenses.
United said that not everyone who receives a notice 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.
Delta Air Lines, which reports second-quarter results on Tuesday and is blocking intermediate seats until at least September 30, told employees last week that it plans to “slow down as we look to the recovery, which is likely to be long. and slow. ”
Monday is the deadline for Delta employees to accept a voluntary departure agreement.
Reports by Tracy Rucinski and David Shepardson; Chizu Nomiyama, Nick Zieminski and Dan Grebler edition
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