Jobs slashed, hubs cut as industry struggles

Even as major cruise and airlines prepare for some sort of return to mobility, the economic damage from the outbreak raises questions about what kind of travel industry will emerge.

• United Airlines is planning deep staffing cuts for pilots, managers and administrative staff in October after federal aid to help cover payroll costs runs out. The Chicago carrier warned its 12,250 pilots in a memo to prepare for “displacement” that affects 30 percent of them, or nearly 3,700 pilots. In a separate memo, United told employees it is planning at least a 30 percent cut in management and administrative staff, or 3,450 of them. Under terms of $5 billion in federal virus-relief aid, United can’t lay off employees through September.

• Norwegian Cruise Line has “substantial doubt” that it will be able to continue as a going concern without new funding or terms of debt. The cruise operator said in a regulatory filing that it was in compliance with all debt covenants as of March 31, but that it might need additional amendments from lenders. There’s no guarantee Norwegian will get the approval for the amendments, which could lead to an inability to continue operations.

• Virgin Atlantic is planning to cut 3,150 jobs and end its operations at London’s Gatwick Airport because of what it called the most devastating crisis since the company’s first flight 36 years ago. The airline, which is in the process of applying for emergency loans from the British government, said job losses will be across the board. It’s also planning to reduce the size of its fleet.

Airbnb is cutting 25 percent of its workforce as the coronavirus pandemic continues to pummel the travel sector. About 1,900 Airbnb employees across the world will be affected, Chief Executive Officer Brian Chesky wrote in an email to staff Tuesday.

Chesky said travel will eventually return, but will look different. Airbnb expects travelers will want options that are closer to home and more affordable, for example. The company is scaling back its investments in luxury properties as a result.