United Airlines is laying off 2,850 pilots this fall the airline announced. If it does not get the government relief aid, which was provided to the airlines to cover their labor costs during a pandemic it will have to implement layoffs.
However, United’s number of laying off pilots is higher than the 1,941 pilots that Delta will furlough. Whereas American plans to terminate 1,600 pilots.
The Chicago-based airline told pilots it will send furlough notices by U.S. mail in the next few days, with the cuts taking effect between Oct. 1 and Nov. 30.
The airlines and their labor unions are asking the minister to approve another $25 billion to help the airline companies. So they can cover labor costs for six more months, through next March. However, talks between the White House and congressional Democrats over a larger virus-relief measure have stalled.
Earlier this year, the airlines were given $50 billion in grants and loans for passenger airlines. It also includes the $25 billion to keep workers on the payroll through September.
In July it seemed like travel is Rebounding. But due to the increase in cases in the US people are hesitant to travel. As there are travel restrictions in many countries to prevent more spread.
Financial Loss Due to the Pandemic
However, this decrease in demand is causing the airlines massive losses. The Delta, United, American, and Southwest lost $10 billion between them in the second quarter.
United Airlines announced that it has lost $1.6 billion in the second quarter as air travel was down because of the pandemic.
However, the airline’s net collection was just $1.4 billion in revenue. This is an 87.1 percent drop as compared to the same quarter last year, with capacity falling 87.8 percent.
But there was a somewhat positivity in the airline’s announcement. Things were not nearly as bad as they could have been.
Delta Air Lines also announced its second-quarter performance which is worse than United. However, the airline reported that its net loss for the quarter is $5.7 billion.
Cost Cutting Plans
Previously, United Airlines announced that it will be sending layoff notices to about 36,000 of its US employees. This will be nearly half of the airline’s US staff.
However, other than the staff cuts, United Airlines also reduced its management and support staff by 1,300 starting from 1 October. Moreover, the airline will be reducing its international staff as well. United employs 95,000 people.
The layoffs at United are the latest in a long line of hits the industry has taken since the arrival of the coronavirus. There has been a decline in air travel by 95 percent since the beginning of March until the middle of April due to the pandemic.