Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

United warns of more pilot furloughs as U.S. airlines eye second bailout

share with twitter share with LinkedIn share with facebook
07/30/2020 | 12:34pm EDT
FILE PHOTO: A United Airlines passenger jet takes off with New York City as a backdrop

United Airlines told its pilots it may need more furloughs than originally planned this year and next due to a worsening industry outlook as COVID-19 cases rise, unless there is another bailout or unions agree to reduce costs, a memo reviewed by Reuters showed.

The internal memo, which United confirmed was sent to pilots on Thursday, comes as unions lobby U.S. lawmakers to extend a $32-billion aviation stimulus plan that protected aviation workers' pay and jobs through September.

A second bailout, coined CARES Act 2.0, has Congressional support but could face hurdles among some Republican senators, people familiar with the matter said.

Airlines are suffering their worst crisis in history due to COVID-19, which crushed the U.S. economy in the second quarter.

Chicago-based United does not forecast a recovery until a vaccine is mass produced, something it does not expect until late 2021.

But once a recovery arrives, airlines say they need trained workers on hand to operate an industry that is vital to the global economy.

Tens of thousands of airline jobs are at risk.

FURLOUGH WARNINGS

"There are really only two ways to mitigate the full impact of furloughs. The first is another stimulus bill," United's head of flight operations, Bryan Quigley, said in the memo.

The Chicago-based airline had previously said it would furlough 2,250 pilots between Oct. 1 and the end of 2020 and another 1,650 in 2021, depending on demand.

United did not provide additional comment.

It has already told 36,000 union workers, about 45% of the total, that their jobs are in jeopardy.

The message follows a warning from budget carrier Spirit Airlines this week that 20-30% of workers may be furloughed in October.

Others including low-cost Allegiant and Hawaiian Airlines also warned this week of furlough notices, while United and American Airlines extended deadlines for some employees to accept voluntary furloughs or early retirements.

Aside from federal aid, some of which must be re-paid, U.S. airlines have tapped new debt to boost liquidity during the crisis.

United's memo warned that those loans will hinder its ability to buy new planes, hire new pilots, or bring back pilots who were furloughed.

Delta Air Lines and Southwest Airlines, which enjoy a stronger debt position than American and United, have said they can minimize or avoid involuntary furloughs thanks to strong take-up for employee buyouts.

By Tracy Rucinski and David Shepardson

Stocks mentioned in the article
ChangeLast1st jan.
ALLEGIANT TRAVEL COMPANY 1.86% 123.76 Delayed Quote.-28.89%
AMERICAN AIRLINES GROUP INC. 4.42% 12.29 Delayed Quote.-57.15%
DELTA AIR LINES, INC. 2.65% 29.78 Delayed Quote.-49.08%
HAWAIIAN HOLDINGS, INC. 3.23% 12.8 Delayed Quote.-56.30%
SOUTHWEST AIRLINES 0.65% 37.1 Delayed Quote.-31.27%
SPIRIT AIRLINES, INC. 3.12% 16.2 Delayed Quote.-59.81%
UNITED CONTINENTAL HOLDINGS, INC. 4.46% 34.2 Delayed Quote.-61.18%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
12:20aWALL STREET WEEK AHEAD : Trump-Biden debate could spark stock volatility
RE
12:15aGeely's EV maker Polestar plans new plant for Precept model
RE
09/25Beijing autoshow-bmw china's goller says company expects “single digit growth” in china this year
RE
09/25Beijing autoshow-official at china's gac says expects sales to grow for full year
RE
09/25China suspends seafood imports from two Russian vessels for a month
RE
09/25Trump extends drilling ban off North Carolina, Virginia
RE
09/25Statement by President Donohoe on the candidates for the post of ECB executive board member
PU
09/25COVID-19 : Council approves €87.4 billion in financial support for member states under SURE
PU
Latest news "Economy & Forex"