United Airlines warns of layoffs, details virus safety rules at IAH
After reporting one of the worst quarterly losses in company history, United Airlines last week began to detail its emergency response to free-falling travel demand to rescue the company from passengers’ COVID-19 fears.
The Chicago-based airline that claims the largest market share of the Houston Airport system warned its U.S. workforce that about half of them are at risk of losing their jobs this fall when the terms of Congress’ bailout money expire. At George Bush Intercontinental Airport, as many as 3,900 employees could lose their job beginning in October, the company said.
Hundreds of other employees at William P. Hobby Airport and North Houston Center may
also be laid off as well, United wrote in a state-required notice.
At the same time, United is trying to convince cautious passengers to fly with them again. The airline has rolled out new safety measures — from touchless kiosks to scan and print bag tags to boarding back to front. Flying with United from IAH may never be the same.
“We are doing everything we can to keep our facilities completely free of COVID-19,” said Rodney Cox, United’s vice president of IAH Hub airport operations. “I feel it’s safe to fly. (Our customers) have to make that decision themselves, because they all have a different level of tolerance.”
United isn’t expecting a quick rebound. In April, travel bookings were down 95 percent, wrote Kate Gebo, executive vice president of human resources and labor relations at United, in a letter to the Texas Workforce Commission about the coming layoffs. By mid-June, they had barely improved; bookings remained down 90 percent from a year earlier.
“We expect that travel demand will not go back to ‘normal’ until there is a vaccine for COVID-19,” Gebo wrote.
Third of local staff at risk
United is one of Houston’s largest employers, and IAH is one of the company’s largest hubs. United employs 13,800 people in the Houston region, according to a company fact sheet.
Between the potential layoffs expected at IAH, another 123 expected at William P. Hobby Airport and 658 at the North Houston Center, United could cut more than one-third of its local workforce this fall.
Another 71 employees are at risk of layoffs at Dallas Fort Worth International Airport, according to the state notice.
A company spokesperson declined to provide further comment on the layoff notices and referred to the company’s letter to the Texas Workforce Commission.
United Airlines is among other major airlines receiving billions in bailout money from Congress
to protect jobs. United wrote in its letter to the state that the payroll support program protected jobs through Sept. 30, but the $5 billion in federal aid and a low-interest loan “only covers a part of our normal monthly payroll cost” and none of the company’s operating expenses.
The layoffs would begin Oct. 1, and United anticipates they would last six months or longer. The company is encouraging employees to take early retirements, which could lessen the impact of the layoffs this fall.
“Participating in these (voluntary separation programs) could significantly reduce the need for involuntary furloughs,” Gebo wrote.
First-quarter earnings for airlines were dismal for United Airlines and the entire industry. United reported losses of $1.7 billion; American Airlines, $2.2 billion and Delta Airlines, $534 million.
The dramatic downturn in demand for travel resulting from the COVID-19 pandemic has forced airlines to slash expenses. But at the same time, they need to invest in new technology and cleaning procedures to get passengers back.
Airlines’ biggest problem? Customers are scared to fly.
At IAH, United rolled out a long list of protocols for employees and passengers to reduce transmission of the virus. Employees get temperature checks through thermal cameras each morning; if they have a fever, they’re sent home.
Sneeze guards are installed at the baggage counter. Stickers on the floor remind passengers to keep 6 feet away from others. Kiosks equipped with QR code technology print bag tags without touching the screen.
Then at the gate, boarding and departing is done in smaller groups. Boarding is done from the back of the plane forward, and departing is from the front of the plane back.
Masks required on board
Once on board, everyone is required to wear a mask for the duration of the flight — except when drink and snack service is provided. Passengers may remove their mask on flights longer than 2 hours and 20 minutes to consume the limited and individually packaged snacks and drinks.
“We have found that our customers still want some type of a snack,” Cox said. “If they don’t want to eat the snack or drink, they don’t have to remove their mask to do that. We’re not forcing them to (remove their mask), of course.”
United, along with other major airlines, requires customers to wear masks during flight, and if they do not comply, they will be banned from flying on the airline at least until the company conducts an incident review.
Cox said United airplanes are flying at about 60 percent capacity. If a flight is close to capacity, customers can re-book on another flight without change fees. When possible, if a flight is over 70 percent its capacity, Cox said United is trying to add a flight at the same time to spread out passengers.
The planes are detailed with disinfectant between each flight, including window shades and seat belts. The planes also have filters that recirculate air every 2-3 minutes, and electrostatic sprayers are used to disinfect the cabin before flights.
United typically operates an average of 500 flights out of IAH per day. In July, the airline is flying about 200 per day, Cox said. In August, that will likely increase, but he said, “it depends on the demand of our customers.”
“If we see more people, we will add more flights,” Cox said. “I can reassure our customers that this is a safe environment to travel through.”