United pilots to consider furlough and early retirement deals
2,250 pilots are at risk of furlough this year at United
The union for United Airlines pilots has struck a pair of tentative agreements concerning voluntary furloughs and early separation options.
This comes after the carrier announced Wednesday that it could furlough 36,000, or 45 percent, of its U.S.-based frontline employees by Oct. 1.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 51.07 | +2.33 | +4.78% |
Airlines that received government loans were forbidden from furloughing or laying off employees until Sept. 30 under the terms of a $2.2 trillion federal coronavirus stimulus package aimed at helping airlines retain staff as the pandemic crushes the travel industry.
The agreements will be considered at a Master Executive Council meeting next week.
UNITED AIRLINES COULD FURLOUGH 36,000 EMPLOYEES BY OCT. 1 AS DEMAND REMAINS LOW
FOX Business received comment in a statement from MEC Master Chairman Capt. Todd Insler.
"Furloughing employees is corporate triage with a terrible impact on thousands of United families. The notification sent yesterday to 2,250 pilots represents over 17 percent of our ranks at risk of furlough this year. Unfortunately, this may not be the full extent of the furloughs, and we must be prepared for more based on the Company's plan to be 30 percent smaller next summer. ALPA is doing everything we can do to support our fellow pilots, and we look forward to final agreements on these voluntary programs which will mitigate pilot furloughs."
According to an SEC filing, United saw a significant decrease in domestic flight bookings since June 16 as COVID-19 cases across the country surged. United bookings from Newark, New Jersey, saw an 84 percent decline year-over-year and a 73 percent decline year-over-year at other airports.