Poll: What is the probability for an extension of U.S. payroll support program aid to airlines?
United Airlines will furlough more than 16,000 workers on Oct. 1, less than half its previous estimate of 36,000, as the carrier has seen a greater-than-expected participation in voluntary separation and time-off programs.
In a companywide message sent to employees on Sept. 2, viewed by Aviation Daily, Chicago-based United said that despite solid participation in the voluntary schemes, “efforts so far to cut costs, raise debt and introduce voluntary options have not been enough to avoid involuntary furloughs entirely.”
As such, United will let go 16,370 employees on Oct. 1, following the expiration of the U.S. federal government’s CARES Act Payroll Support Program, which funded U.S. carriers’ labor costs through the 2020 second and third quarters.
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