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Airlines Say Furloughs to Start Today After Hope for Deal on Coronavirus Aid Fades

Submitted by jhartgen@abi.org on

U.S. airlines said that they will begin furloughing tens of thousands of employees today after congressional leaders and the Trump administration failed to reach a deal on a coronavirus relief package, the Washington Post reported. In making the announcements yesterday, the carriers left open the possibility that workers could be called back if a deal is reached in the next few days. American Airlines was the first to announce its plans, saying that it would begin furloughing 19,000 employees. Chief executive Doug Parker said in a letter to employees that he spoke with Treasury Secretary Steven Mnuchin late Wednesday about the status of his negotiations with House Speaker Nancy Pelosi (D-Calif.) but came away with no guarantee a deal would be reached. Parker wrote that the airline had to begin the furloughs but that he committed to Mnuchin he would recall employees if a deal is reached. A similar message came from United, which said it will be forced to furlough roughly 13,000 employees starting today.