United Could Furlough Up to 36,000 Workers as Airline Industry Crisis Drags On
United Airlines on Wednesday announced major cuts planned for this fall, a grim sign for an industry that has struggled to stay aloft despite billions of dollars in federal stimulus funds.
Air travel has plummeted since the beginning of the coronavirus pandemic and, despite a steady increase in passenger load since April, it remains severely depressed. United's announcement is another sign that the industry is not expecting travel to rebound. It comes amid a sharp uptick in coronavirus cases and hospitalizations nationwide.
The federal government distributed about $25 billion in emergency stimulus funding to airlines on the condition that those that received the money would not make any significant worker cuts through Sept. 30. United received about $5 billion of that money.
The airline said it could furlough up to 36,000 employees, or more than 40% of its total workforce, starting Oct. 1, depending on traveler volume and the number of people who take buyouts or early retirement packages.
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