United Airlines warns it may furlough nearly 40 percent of its employees
Tens of thousands of United Airlines employees could be facing furloughs this fall, the company has warned.
United on Wednesday said it could furlough up to 36,000 workers beginning on Oct. 1, The New York Times reports. That's almost 40 percent of its staff, according to the Times. United previously received assistance under Congress' CARES Act, which stipulated that airlines can't lay off workers prior to the beginning of October, USA Today notes.
In a memo, United says that it's "increasingly likely that travel demand will not return to normal until there is a widely available treatment or vaccine" for COVID-19, especially after the "recent resurgence of COVID-19 cases across the country," Axios reports. The company is reportedly expecting its capacity for August to be down 65 percent compared to the same time a year ago, according to Axios.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"The reality is that United simply cannot continue at our current payroll level past October 1 in an environment where travel demand is so depressed," the memo also says.
Boeing CEO Dave Calhoun earlier this year predicted that due to the "grave" threat airlines are facing during the pandemic, it's "likely" at least one major U.S. carrier will go out of business, adding that after travel levels likely stay low through September, "there will definitely be adjustments that have to be made on the part of the airlines."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published