American Airlines and United Airlines to furlough a combined 32,000 workers

American Airlines and United Airlines plan to furlough a combined 32,000 workers starting Thursday, when federal aid expires.

 “I am extremely sorry we have reached this outcome,” the American Air CEO said in a letter to employees. “It is not what you all deserve.”

Both airlines said they would reverse course if lawmakers and the Trump administration reach a deal for a new coronavirus stimulus that includes more airline payroll support.

The terms of $25 billion in federal payroll support Congress passed for the ailing sector in March prohibit airlines from cutting jobs until Oct. 1. The aid was meant to help airlines cope with a sharp drop in bookings until there was a significant recovery in demand, which hasn’t materialized. 

Airlines spent the last several months urging lawmakers for another $25 billion in payroll support, a proposal that has won bipartisan support. That would have preserved jobs through the end of March, despite weak travel demand.

United Airlines to cut 16,000 jobs

The Chicago-based airline's workforce will be about 26 percent smaller than the roughly 91,000 employees it had before the coronavirus outbreak.

United Airlines on Wednesday said it is planning to cut more than 16,000 jobs as early as next month, after federal coronavirus aid that protects aviation jobs runs out.

Those involuntary cuts, many of them furloughs that mean employees can be called back if demand returns, make up close to 17% of United’s staffing level at the end of 2019.

The number, however, is far lower than the 36,000 staff Chicago-based United warned in July that their jobs were at risk. The reduction is thanks to thousands of volunteers who accepted buyouts, early retirement packages and more than a dozen other forms of temporary leaves or reduced schedules. Airlines pleaded with employees to take such options to reduce their headcounts, offering perks like continued health care in some cases, a selling point during the pandemic. More than 7,000 United employees opted to separate from the company.

United Airlines warns it may furlough a third of its pilots

(Bloomberg)—United Airlines Holdings Inc. warned that it’s considering furloughs for as many as one-third of its nearly 12,000 pilots, citing a resurgence in U.S. coronavirus cases that’s weakened sales.

“In recent weeks, bookings have stalled and we continue to see an impact of the recent increase in Covid-19 cases on our business,” Bryan Quigley, senior vice president of flight operations, wrote Thursday in a memo to United pilots.

United’s planning for a further “significant reduction in business” would drive 3,900 pilot furloughs, “and that may not prove to be enough,” Quigley wrote.

United had planned to furlough 2,250 pilots this year—a number that was expected to be reduced by voluntary leave programs and an early-separation package offered to the carrier’s most senior pilots. Instead, the number could almost double as the virus rages in many parts of the U.S.

“Because Covid-19 cases continue, and demand improvement remains very slow, we may need to furlough more pilots in 2020, and in 2021, than originally planned,” Quigley wrote. The Chicago-based airline has 11,675 active pilots.

To date, 6,000 employees have agreed to quit the airline and another 26,000 have taken voluntary leave programs, the company said July 21.

Airline labor unions, including ALPA, have been vigorously lobbying Congress to extend payroll support funds for six months to avoid mass industry job cuts in October. The current payroll program—and its protections—ends Sept. 30.

United Airlines plans 30% cut to management ranks from October

(Reuters) - United Airlines Holdings Inc (UAL) has told employees that it expects its management and administrative ranks to be around 30% smaller starting in October, according to a company memo seen by Reuters.

United is among U.S. airlines that have accepted U.S. government payroll aid that bans job cuts until Sept. 30. United has warned that air travel demand hit by the coronavirus pandemic is unlikely to have recovered by that date, forcing it to downsize.

United Continental to cut 600 management jobs

(Reuters) — United Continental Holdings Inc. posted a bigger fourth-quarter loss on Thursday as costs rose and revenue fell, and the carrier said it expects to cut more than 600 management and administrative jobs. The airline has been working to win back customers who turned to rivals after technology glitches hurt customer service. United made a number of changes to integrate as one carrier following its 2010 merger, including converting to a new computer reservation system.

Chairman and Chief Executive Jeff Smisek said 2012 was tough, but things were looking up. "Our operations are running smoothly  and our customer satisfaction scores are climbing," he said during a conference call.

Still, United said it was taking actions to improve financial results. The company said its officer headcount was reduced by 7 percent in December and starting next month, management and administrative staff would be cut by 6 percent.

Smisek said a portion of the cuts would come from voluntary exit programs.

United Continental has more than 85,000 employees.

The world's largest carrier said its quarterly net loss widened to $620 million, or $1.87 a share, from $138 million, or 42 cents a share, a year earlier.

It took charges of $430 million in the quarter, with much of that tied to paying off pension obligations and costs for systems integration and training and severance.

Excluding items, United said the 2012 quarterly loss was 58 cents a share, compared with a 61-cent loss expected by analysts on average, according to Thomson Reuters I/B/E/S.

Revenue fell 2.5 percent to $8.7 billion. Passenger revenue per available seat mile, a measure of pricing power and how full planes are, rose 0.6 percent in the quarter.

Operating costs rose 3.2 percent. Although fuel costs edged down 0.3 percent, expenses for salaries and maintenance materials were 4 percent and 9.2 percent higher, respectively.

Superstorm Sandy, which barreled through the U.S. Northeast in late October, reduced revenue by about $140 million and profit by about $85 million in the fourth quarter. The storm caused shutdowns at major New York area airports, including New Jersey's Newark Liberty International, where United operates a major hub.

Shares of United were up 2.3 percent to $25.57 in afternoon trading.

Chicago : United Airlines boosting workforce by 1,300

(Crain's) — Chicago is beginning to reap the rewards of the merger of United Airlines and Continental Airlines.  United said Friday it is adding another 1,300 jobs in Chicago, which is headquarters to the newly combined airline. The announcement brings downtown workers from elsewhere in the two carriers' operations.

It also adds to the number of those making the move from operations in Elk Grove Village, as the carrier has begun moving into Willis Tower. The downtown move was under way when United announced last year it planned to merge with Houston-based Continental Airlines.

The jobs are in a variety of roles, including operations, technology and human resources. The moves are expected to be completed by the end of next year.

Originally, United said it would bring 2,500 jobs downtown from Elk Grove Village.

Last fall, parent United Continental Holdings Inc. decided to increase its space at Willis to 12 floors from nine. United already is beginning to move workers into the building, which ultimately will house the airline's operations center.

The carrier is working toward federal approval to operate as a single airline, expected later this year.

“As Chicago’s hometown airline, United is pleased to announce that we are bringing an additional 1,300 jobs downtown from locations throughout our system by the end of 2012,” United Continental Holdings CEO Jeff Smisek said. “Mayor (Rahm) Emanuel recognizes the importance of keeping Chicago competitive with other cities and expanding job growth here, and we look forward to working together with him and his team.”

Said Mr. Emanuel: “I promised to foster a business climate that attracts and retains the greatest companies in the nation. I am happy to announce that United has substantially increased their commitment to the city of Chicago, by bringing these jobs to the hardest-working people in America.”