CHICAGO, (Reuters)- as the coronavirus continues to devastate the airline industry, United Airlines said on Wednesday, it is preparing to furlough 16,370 workers when federal aid expires on Oct.1.
Chicago-based united had over 90,000 employees before the pandemic brought the industry to a near standstill in March had warned in July that 36,000 jobs were at risk of involuntary furloughs as demand remains weak.
It reduced the final number of forced cuts, the United’s cuts include 6,920 flight attendants but 14,000 of them will not have a paycheck in October unless Congress acts to extend $25 billion in aid.
Airline received $25billion in U.S. government stimulus funds in March meant to cover payrolls and project jobs through September, when the industry had hoped a rebound.
Airlines and unions have lobbied Washington for another $25billion, but congress had struggled to reach government on a border coronavirus assistance package.
U.S. passengers airlines are still losing more than $5 billion a month as 30% of planes remain parked.
United’s schedule for September is 63% smaller than a year .passengers travel demand is down about 70% and ,on average, planes that are flying are half-full.
President Donald Trump said that his administration will help U.S. airlines but has not given any details. Congress also approved another $25 billion in loans for airlines under the first stimulus package, but not all of them are tapping the funds.
Credit: Tanya singh