United to furlough over 16,000 workers

Cuts to begin as federal support ends

United Airlines announced Wednesday that it will furlough 16,370 employees once a federal payrollsupport program expires at the end of the month.

The number is significantly fewer than the 36,000 the airline said in July could face furloughs, but company officials said several steps, including aggressive costcutting and the willingness of thousands of employees who agreed to take voluntary leave or work part-time schedules allowed it to reduce the number.

Still, it was a stark reminder of the challenges the industry faces as it grapples with the worst economic downturn in its history.

“The pandemic has drawn us in deeper and lasted longer than almost any expert predicted, and in an environment where travel demand is so depressed, United cannot continue with staffing levels that significantly exceed the schedule we fly,” the company said in a memo to employees. “Sadly, we don’t expect demand to return to anything resembling normal until there is a widely available treatment or vaccine.”

Airline officials said the final number could come down further before Oct. 1, adding that furloughs would be postponed if Washington approves another $25 billion to help passenger airlines

cover payroll costs.

To date, about 7,400 United employees have chosen to exit the company voluntarily, while another 20,000 are on temporary leave.

The employees facing involuntary furloughs include 2,850 pilots, 6,920 flight attendants and 2,260 airport operations employees.

The level of cuts, however, is 55% lower than the number of layoff warnings that United sent to employees in July.

Most union employees in the airline industry whose jobs are cut have rehiring rights — management and administrative staff generally do not. United began the year with 96,000 employees, 84% of whom were represented by unions.

Last month, American Airlines said it will have 40,000 fewer workers this fall, including about 19,000 who will be involuntarily furloughed or laid off starting in October.

Southwest Airlines said

earlier this summer that it expects to avoid furloughs or layoffs through the end of the year after 16,900 employees took voluntary extended time off or left the company, but “will continue to plan for multiple weak scenarios and maintain our preparedness.”

Delta Air Lines has warned nearly 2,000 pilots that they could be furloughed.

The airlines have cut schedules, slashed expenses and borrowed billions to survive the pandemic. Even with a modest recovery since April, passenger volumes remain about 70% below 2019 levels, based on U.S. security screening data.

United’s September schedule is only 37% of what it was a year earlier. Reflecting the pandemic’s impact, United’s revenue plunged 87% in the second quarter, leading to a record $2.6 billion adjusted loss.

Josh Earnest, a United senior vice president, said the Chicago-based airline doesn’t expect travel to return to normal until a vaccine for covid-19 is widely available, and that the recovery is likely to be uneven. The airline expects to recall furloughed workers piecemeal, he indicated.

“We don’t have to snap everybody back at the same time,” he told reporters. “We can basically build our workforce as we need it and as our schedule grows and as demand recovers.”

Airlines that accepted federal aid to cover payrolls have been barred from furloughing or laying off workers since March. United took $5 billion in payroll cash and loans. United and other airlines and their unions are lobbying Congress and the White House for another round of payroll support that would run through next March.

“Flight attendants across the country are demanding Congress take action now to protect aviation workers and all working Americans who have been affected by this devastating pandemic,” Sara Nelson, international president of the Association of Flight Attendants-CWA, said in a statement. “Together with other aviation workers we have sent hundreds of thousands of letters and made even more calls to offices.

Nelson said more than 1,000 flight attendants will leave the company voluntarily while more than 2,000 have opted to take voluntary time off.

“The hurt cuts deep and even ‘voluntary’ options include incredible sacrifice for flight attendants and all the people whose jobs depend on our paychecks too,” added Nelson, whose union represents nearly 50,000 flight attendants at 20 airlines.

The White House has signaled that it could take executive action if Congress doesn’t reach a deal, but has offered no details of what that would involve and it is unclear how the administration could act on its own to extend aid to airlines or take steps to prevent furloughs.