40,000 Airline Workers Brace off Mass Layoffs

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40,000 Airline Workers Brace off Mass Layoffs
tjdarmstadt / CC BY

Since the coronavirus outbreak, it has hurt many sectors and especially the travel and tourism industry. Thousands of airline workers including flight attendants, gate agents, baggage handlers and others have been getting partial pay through $25 billion in loans and grants to the nation’s airlines. To accept the service, companies had taken not to lay off workers throughout September 30. The “Payroll Support Program” supported several to linger on, and retain health care as well as other benefits.

With air travel declined about 70% from last year, several carriers including United and American, say they’ll be forced to cut jobs without any further aid. Delta and Southwest, The two big carriers, drew private capital markets and said they’ll shun layoffs.

The American Airlines CEO, Doug Parker said that he is hopeful for the relief package that has been discussed by the Speaker of the House Nancy Pelosi and Treasury Secretary Steve Mnuchin on Wednesday.

He also said that furlough employees are the last thing in his mind. It is a difficult situation where a decision has to be made whether to furloughs to be postponed or not. All depends on the deal if it gets finalized.

Travel industry analysts say fear of air travel and businesses holding employees near to home has led to an unusual crisis in the sector, rising in catastrophic losses. In the second quarter of the year, the four most populous U.S. airlines — United, Delta, Southwest, and American — collectively have lost $10 billion.

Some airline passengers further mean limited demand for hotels, restaurants and rental cars. Including the need for new planes has dropped, airplane maker Boeing has cut thousands of jobs. Plus with tourism declining, The Walt Disney Co. announced on Tuesday to lay off 28,000 workers in its parks in Florida and California.