Airlines At Risk of Cutting 30,000 jobs on Oct. 1

On October 1, 2020, $25 billion in funding that kept the airlines afloat during Covid Pandemic will run out.

This the airline executives warn, will lead to a cut of 30,000 jobs. American, United, Southwest, and JetBlue have been contacting Washington lawmakers in hopes to persuade lawmakers to provide additional aids, as the job cuts are set to begin tomorrow.

CARES act in March included $25 billion to keep workers paid until September 30 in hopes that travel would recover over the summer. Unfortunately, demand was only around 30 percent of last year’s, as the virus was not properly contained, and many countries and states continued to keep travel closed off for the year.

There is light at the end of the tunnel for the airline executives, however.  The proposal aid for $2.2 trillion unveiled by House Democrats, has won bipartisan support.

Airlines have raised billions from debt and equity markets to keep themselves afloat, with seven carriers finalizing federal loans with the Treasury department for a separate pool of $25 billion set aside.

Airlines have also negotiated with its employees to keep the airlines afloat and the employees hired, such as cutting schedules by 25 percent, or having employees be on unpaid or partially paid leaves of absence.

As the pandemic continues, the outcome continues to look bleak for the airlines, even with the proposed aids.

Coree ILBO copyright (c) 2013-2020, All rights reserved.

This material may not be published, broadcast, rewritten or redistributed in whole or part with out the express written permission.

Leave a Reply

Your email address will not be published.

Confirm that you are not a bot - select a man with raised hand: