The notorious furlough warnings from American Airlines and United Airlines?
Rip ‘em up and enjoy continued employment for a while.
The two major U.S. carriers on Wednesday withdrew approximately 27,000 employee furloughs as the COVID-19 relief package neared presidential approval.
A much more satisfying memo arrived from American CEO Doug Parker and President Robert Isom. It said those warnings are now “happily canceled — you can tear them up!”
The House passed its $1.9 trillion relief package that included an extension of the payroll support program.
“By extending PSP, our teams will be able to remain current in their training and ready to match expected future demand,” United CEO Scott Kirby said in a statement. “Thousands of frontline workers will now receive paychecks and health care through September, which is especially critical while vaccine distribution continues to ramp up.”
There were 13,000 American Airlines workers and 14,000 from United whose jobs were in jeopardy as of next month unless the Coronavirus Aid, Relief, and Economic Security (CARES) Act was to be renewed.
Under the terms of the package, airlines can not furlough workers before Sept. 30 or they would forfeit their portion of the $15 billion in aid.
Though the recovery continues, passenger volumes remain down nearly 60% compared with this time last year and, according to Airlines For America, passenger airlines are still spending about $150 million of their cash per day.
Nick Calio, the president of A4A, which represents all major U.S. airlines, said in a statement on Wednesday, “We appreciate the Administration’s work on this legislation, and we urge President Biden to act swiftly to sign the ARP into law.”
Biden will sign the bill Friday, according to White House press secretary Jen Psaki.