UPDATED: Mixed messaging on airline relief extends uncertainty for 40,000 furloughed workers
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
A flurry of tweets from President Trump on Tuesday appeared to sow only more uncertainty about whether airlines would get a second round of coronavirus aid before the election.
In the span of just seven hours, the president made an about face on the issue of additional coronavirus pandemic aid to airlines. After tweeting that he had ordered Republicans to end negotiations with Congressional Democrats to end relief talks at 2:48 p.m. ET, Trump came back with a tweet saying talks over airline and small business relief were back on at 9:54 p.m. ET.
The conflicting messages come as more than 40,000 airline staff have been or will imminently be furloughed following the expiration of protections under the coronavirus aid package, or CARES Act, on Sept. 30. However, it remains unclear whether an extension can pass Congress in the 30 days before the Nov. 3 election — even with support from the White House and a bipartisan coalition of legislators.
Sign up for the free daily TPG newsletter for more airline news!
…request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020
Airlines are asking for at least $25 billion in payroll assistance to keep staff on the payroll until next March. With the additional aid, they argued that they could weather what is shaping up to be a very tough winter until travelers started to return for the summer 2021 season. In addition, they expect more clarity around the availability of a COVID-19 vaccine that the industry hopes will allow travel to return to a semblance of normal.
After saying that “time already ran out” after Trump’s first tweet, trade group Airlines for America (A4A) president Nicholas Calio said he appreciated the show of support from the president following the later tweet.
“We remain hopeful that either the President or Congress will act swiftly to save these jobs,” Calio said. “We need action now.”
Related: More than 40,000 furloughs begin as ‘terrible Thursday’ arrives for airlines
Furloughs have hit the workforces at American Airlines and United Airlines the hardest with more than 19,000 and 13,000 people, respectively, let go. Alaska Airlines, Allegiant Air, Hawaiian Airlines and Spirit Airlines have also furloughed staff since the beginning of the month. In addition, regional carriers Envoy, GoJet Airlines and PSA Airlines had or intended to let go of staff.
The initial job losses may only be the first step. On Oct. 5, Southwest Airlines CEO Gary Kelly told staff that the carrier was seeking concessions from its labor unions to help it cut costs. Without concessions — or additional federal aid — the airline will have to furlough staff next year.
Flights to small cities are also in question without further aid. American is moving forward with suspending flights to 11 small communities — some of which have no other air service — across the U.S. on Oct. 7, confirmed spokesperson Stacy Day to TPG.
Related: Southwest Airlines seeks historic cuts from unions as it tries to avoid layoffs
The airline has extended the suspensions that affect airports like Dubuque, Iowa (DBQ), and New Haven, Connecticut (HVN), through the end of November instead of Nov. 3 as first announced, Day said.
Delta Air Lines and JetBlue Airways have indefinitely suspended flights to Newburgh Stewart (SWF) near New York and Worcester, Massachusetts (ORH). And the CEOs of both Southwest and United have said they may have to suspend some destinations if losses continue.
Airlines did receive one break this week. The Federal Aviation Administration extended a waiver allowing them to idle valuable flight slots at New York John F. Kennedy (JFK) and LaGuardia (LGA) airports, and Washington Reagan National (DCA) until next March.
Related: American, United say flights to small cities are at risk unless Congress extends payroll program
The story was updated to reflect the president’s later comment on airline relief.
Featured image by Chip Somodevilla/Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.