President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748) into law on March 27, 2020, providing $10 billion in economic relief to U.S. airlines as a response to the COVID-19 pandemic, with the total amount of bailout funds for airlines reaching $58 billion.
Under the CARES Act, airlines that received relief funds cannot cut jobs until after September 2020. With travel and health restrictions still in place and many uncomfortable with regular travel even as guidelines begin to loosen, the economic outlook for U.S. airlines and its employees is looking rather grim.
"In the past few weeks, thousands of pilots and crew members have received furlough notices, and absent congressional action, it is likely that there will be more to come," said Captain Joe DePete, president of the Air Line Pilots Association. "Clearly more needs to be done," he added, regarding the CARES Act and support of airline workers.
United Airlines
United Airlines Holdings Inc. (NASDAQ: UAL) recently warned 36,000 employees of the possibility of imminent layoffs beginning October 2020, which is nearly 50% of its U.S. employees. According to NPR, those negatively impacted with involuntary furloughs would include 15,000 flight attendants, 11,000 agents and representatives, 5,500 mechanics and maintenance staff, and 2,250 pilots.
If every other U.S. airlines begins furloughing at the same rate as United, the overall impact to unemployment based on airlines could entail upwards of 240,000 jobs lost nationwide.
American Airlines
American Airlines Group Inc. (NASDAQ: AAL) may be cutting 25,000 jobs, roughly 30% of its U.S. workforce. These potential layoffs and furloughs include unionized employees like pilots, flight attendants, and mechanics. The highest proportion of cuts are being seen by flight attendants, accounting for nearly 10,000 of the employees negatively impacted at American.
Delta Air Lines
Conditions may not end up as bleak at Delta Air Lines Inc. (NYSE: DAL), relatively speaking, considering that 20% of Delta's workforce has voluntarily retired. Among those include 2,234 pilots who agreed to early retirement. The airline was looking to cut 2,500 pilots, so these conditions should cut back on the amount of layoffs needed. In total, the number of Delta employees who volunteered to retire early exceeded 17,000 workers.
Southwest Airlines
Similar to Delta, nearly 17,000 employees of Southwest Airlines Co. (NYSE: LUV) have volunteered for extended leave or early retirement. Of those who volunteered, roughly 24% were pilots and 33% were flight attendants. Between early retirement and volunteered time off, 4,400 offered to retire early whereas around 12,500 are taking prolonged time away from work.