A pilot walks United Airlines planes as they sit parked at the gates of San Francisco International Airport on April 12, 2020 in San Francisco, California.
Justin Sullivan | fake pictures
United Airlines warned Thursday that it may need to suspend more pilots than previously expected, as a significant rebound in travel demand remains distant.
The terms of a federal bailout that provided $ 25 billion to passenger airlines and $ 7 billion to cargo airlines and contractors prohibit them from cutting jobs or paying fares until Oct. 1. But carriers are now warning their workers of possible cuts this fall, urging them to take voluntary time off or purchase agreements to cut costs.
Earlier this month, United informed some 36,000 employees, or more than a third of its staff, that their jobs are at risk and this week extended the deadlines to August for voluntary license and purchase applications.
Airline executives say they expect recovery in travel demand to take years. United CEO Scott Kirby said earlier this month that revenue would likely stabilize at 50% of 2019 levels without a vaccine.
Chicago-based United has plans to suspend about a third of its pilots, about 3,900 people between 2020 and next year, but “we may need to suspend more pilots in 2020 and 2021 than originally planned. “Bryan Quigley, United’s senior vice president of flight operations, said in a staff note. The company earlier this month told 2,250 pilots that they could be suspended when federal aid expires in October.
Congress is negotiating another great coronavirus aid package for the country. More than 200 lawmakers and airline labor unions are urging Congress to pass another $ 32 billion in payroll support for the industry that would protect jobs through the end of March 2021.
The airlines have not formally sought additional help, and executives at American and United are walking a fine line on the matter, saying they support union efforts.
Spirit Airlines CEO Ted Christie told employees Tuesday that up to 30% of the low-cost airline’s front-line employees could be suspended after the terms of the aid expire. “Over the next month, we will evaluate the resources necessary to support our reduced level of flight,” wrote Christie. “These decisions are incredibly difficult for us to make, but we continue to work on voluntary vacations and early retirement options to decrease the number of team members affected by these unprecedented events.”
United’s Quigley said additional help or cost-cutting agreements with unions could mitigate permits.
Airlines hesitate before suspending pilots because it could increase training costs later.
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