Tens of thousands of US airline jobs at risk with aid uncertain

Tens of thousands of airline employees are facing the risk of losing their jobs on October 1, one day after federal aid expires amid the coronavirus pandemic’s destructive effects on the travel industry.

On Tuesday, American Airlines warned it could slash up to 19,000 jobs on October 1 a day after Delta Air Lines said it may have to furlough almost 2,000 pilots. United Airlines meanwhile warned in July that 36,000 would lose their jobs.

Also on Tuesday, low-cost Spirit Airlines pilots signed an agreement with the airline to work fewer hours to help avoid as many as 600 job losses when federal aid runs out.

Staff must be informed of potential layoffs or furloughs 60 days in advance by the airlines. United, American, Delta and other carriers, which received $25 billion in federal payroll aid, are also prohibited from reducing employees’ hours or salaries until October 1.

“They’re in a world of hurt. The industry is suffering not so much from COVID, but pandemic panic,” Mike Boyd, an aviation consultant at Boyd Group International told NBC News. “Congress has to step up, but they’re playing chicken.”

Compared to last year this time, air traffic is down 70 percent, according to Helane Becker, an airline analyst at investment bank Cowen.

While low demand is making airlines strategically rethink their routes and staffing, the airlines are also trying to exert pressure on President Donald Trump and Congress to provide them with a lifeline and extend the payroll support program.

Over the past several months, Congress has been unable to reach deal for a next round of economic relief from the respiratory disease.

Congressional Democrats, White House at impasse over coronavirus bill

Top Democrats in the US Congress and the White House are still in a deadlock over a bill to help Americans deal with the economic repercussions of the coronavirus pandemic.

Republicans are now considering a more narrow coronavirus relief bill as aid talks between the Trump administration and Democrats are at a deadlock, according to CNBC.

“If that continues to be the case, how can the airlines keep staff on board for an airline that is 2.5 times larger than it is today,” Becker told NBC News. “If they fly ‘ghost planes’ to cities where there is zero demand, they will run out of cash, and instead of, as in the case of American, 19,000 furloughs, all 107,000 employees will lose their jobs, communities will lose service and consumers will pay more for airline seats.”

The potential October 1 furloughs and layoffs could also result in a smaller air travel system in the long run, other experts say.

According to experts, it could take from three to five years for a domestic airline industry to recover.

“A lot depends on treatment and vaccine and willingness of governments to allow their citizens to travel,” said Becker. “As long as this continues, it will be a very long recovery indeed.”

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