General Industry

US Airlines Cut Nearly 29,000 Workers Through Mid-October

By Dave Simpson
US Airlines Cut Nearly 29,000 Workers Through Mid-October

The number of people employed in the US passenger and cargo airline industry decreased by nearly 29,000 through the month ending in mid-October as government restrictions on laying off staff expired.

The US Transportation Department said that US airlines employed 673,278 workers in mid-October, which was 81,749 fewer than in March when US travel demand started falling dramatically due to the coronavirus pandemic.

United, Delta And American

The department said that since March, United Airlines has reduced its workforce by 32%, or 29,243 employees, while Delta Air Lines eliminated 32% of its jobs, affecting 28,751 employees.

In October, American Airlines and United Airlines said that they were furloughing more than 32,000 workers after the prior $25 billion payroll assistance programme expired on September 30.

Losing Billions Of Dollars A Month

The US airline industry is still losing billions of dollars a month as travel demand remains down by more than 60% and recent coronavirus travel advisories have discouraged holiday travel.


Delta Q4 Cash Burn Expectation

Delta said this week that it expects a cash burn of approximately $12 million to $14 million per day in the fourth quarter as slowing demand amid a spike in COVID-19 cases adds approximately $2 million per day to its burn rate.

Treasury Secretary Back Additional Government Payroll Support

Treasury Secretary Steven Mnuchin said this week that he backs another $20 billion in additional government payroll support for airlines that could help tens of thousands of workers return to payrolls.

Steep Cuts

Passenger carriers have made steep cuts even as cargo carriers have added workers.

American And Southwest

The government report said American Airlines had shrunk its payroll by 18,262 employees, or 17%, to 90,846, while Southwest Airlines' had fallen 6% to 58,134.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.