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United Airlines says 16,000 employees face involuntary furlough

DPA WORLD
Published September 02,2020
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A member of a ground crew walks past American Airlines planes parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, U.S., April 5, 2020. (REUTERS/Joshua Roberts/File Photo)

United Airlines on Wednesday said 16,000 of its employees face an involuntary furlough as early as next month, as the aviation industry continues to grapple with weak demand due to the coronavirus outbreak.

In a statement, United called the measure a "heart-wrenching" last resort.

"The pandemic has drawn us in deeper and lasted longer than almost any expert predicted, and in an environment where travel demand is so depressed, United cannot continue with staffing levels that significantly exceed the schedule we fly," the airline said.

"Sadly, we don't expect demand to return to anything resembling normal until there is a widely available treatment or vaccine," the statement continued.

The announcement comes as a federal aid package for airlines, which prohibits job and pay cuts, is due to expire at the end of September.

Congress remains at a stalemate regarding a new coronavirus stimulus bill.

United hopes to see an extension to the payroll support programme in any new legislation.

"An extension would be the one thing that would prevent involuntary furloughs on October 1 and hopefully delay any potential impact on employees until early 2021," the company said.

United had warned in July that 36,000 jobs were at risk, but the company said "tens of thousands" of its employees have opted for voluntary leave, early retirement and reduced hours programmes.

American Airlines last week also announced plans to lay off 17,500 workers by October 1.