The U.S. Congress’s failure to pass an extension of the Coronavirus Aid, Relief, and Economic Security (CARES) Act will result in the involuntary furlough of about 32,000 employees at United and American Airlines starting Thursday.
Some 19,000 at American Airlines stand subject to the layoffs while another 13,520 at United Airlines face the same fate. Delta Air Lines has managed to avert any layoffs starting Thursday, but pilot furloughs could start on November 1 if Congress does not reach a deal on an extension of the CARES Act’s Payroll Support Program (PSP).
In a letter to employees sent Wednesday evening, American Airlines CEO Doug Parker expressed hope that lawmakers could reach a deal “in the coming days” and said that efforts were underway in both the Senate and House to pass a standalone PSP extension.
Meanwhile, at United Airlines, pilots have already reached a deal to avert an immediate furlough of 1,747 aviators Thursday. Plans called for the furlough of a total of 2,850 pilots by November 30. In early September, United management notified employees of its intentions in a memo that outlined a breakdown of the effects on various employee groups. Inflight services, which includes flight attendants, will see the most severe cuts with the loss of 6,920 jobs. Flight operations, which employs pilots, will see the loss of 2,850 jobs, while airport and technical operations lose 2,260 and 2,010, respectively. United plans to furlough some 1,400 managers and administrative personnel, 430 contact center employees, 320 catering operations workers, and 180 network operations personnel.
So far 12,500 American Airlines employees have taken voluntary departure packages and another 11,000 will take involuntary leaves of absence this month. Of the additional 19,000 involuntary layoffs, 17,500 involve furloughs and 1,500 involuntary separations among management. Of the 27,000 flight attendants American employed pre-pandemic, 2,700 have left the company permanently, 4,500 will take voluntary leave in October, and 8,100 will be on furlough. Of the 15,000 pilots the company employed before the pandemic, 1,200 have left the company permanently, 700 will take voluntary leave in October, and 1,600 will be on furlough.