More than 30,000 furloughs begin as 'terrible Thursday' arrives for airlines
American Airlines and United Airlines have begun furloughing more than 32,000 staff as the foretold "terrible Thursday" arrives for U.S. airlines.
American began furloughing or laying off 19,000 staff and United 13,342 staff on Thursday after employment protections under the federal coronavirus aid package, or CARES Act, expired on Sept. 30. In addition, American regional subsidiaries Envoy and PSA Airlines began furloughing 1,000 and 1,060 staff, respectively.
Other carriers are also furloughing or laying off staff. Spirit Airlines has furloughed or laid off fewer than 100 staff, a spokesperson confirmed. This brings the total number of airline employees out of work on Thursday to at least 34,592 people.
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"Today is a very sad day," Chicago-based United told staff in a memo late on Sept. 30. It's a sentiment that is likely widely shared across the industry.
The furloughs come as Congress failed to reach an agreement on extending the payroll protection program for airline employees before the Sept. 30 deadline. Despite bipartisan support, both Democrats and Republicans could not agree on a broader comprehensive relief bill that would provide additional aid to the ranks of unemployed Americans and range of hard-hit industries.
The House is expected to vote on a $2.2 trillion relief bill that includes airline funds on Thursday. However, barring an agreement with Treasury Secretary Steven Mnuchin, that bill is not expected to pass in the Senate.
On Sept. 30, both American and United told staff that they will reverse their furloughs and recall staff if Congress reaches a deal on aid.
Related: Airlines prepare for more than 32,000 furloughs on ‘terrible Thursday’
"I am extremely sorry we have reached this outcome," American CEO Doug Parker told staff in a memo late on Sept. 30. "It is not what you all deserve."
Air service to smaller communities across the U.S. also hangs in the balance. The CARES Act required airlines to continue serving all of their pre-pandemic destinations, with a few exceptions. Those rules also expired on Sept. 30.
American will suspend flights to 11 cities across the U.S., including Florence, South Carolina (FLO) and Kalamazoo, Michigan (AZO), on Oct. 7. Executives at Southwest Airlines and United have said the airlines could begin suspending destinations if air travel remains at historically low levels.
Related: American, United say flights to small cities are at risk unless Congress extends payroll program
While not officially exiting any markets, JetBlue Airways has suspended flights to six airports, ranging from Washington, D.C.-region powerhouse Baltimore/Washington (BWI) to Worcester, Massachusetts (ORH), until at least next April.
“Right now, we are not considering permanent closures," Scott Laurence, JetBlue’s head of revenue and planning, told TPG in an exclusive interview on Wednesday.
However, Laurence acknowledged that some of the airport suspensions will extend to a year or more, including at Baltimore. Despite the long duration, JetBlue has "all intent in coming back," he said.
Related: JetBlue service to Baltimore, some California airports now suspended until April
Alaska Airlines, Allegiant Air and Hawaiian Airlines have also said they will furlough staff beginning Thursday. GoJet Airlines will furlough 500 staff on Oct. 4 without a payroll support extension and Delta Air Lines has postponed at least 1,700 pilot furloughs until Nov. 1.
Major airlines Frontier Airlines, JetBlue and Southwest Airlines, as well as regional carriers Cape Air, CommutAir, Endeavor Air, Mesa Airlines, Piedmont Airlines and SkyWest Airlines, do not intend to furlough staff.
Former United affiliate ExpressJet Airlines shut down as previously planned on Sept. 30. The airline employed 2,395 staff at the end of July, according to the latest U.S. Bureau of Transportation Statistics data.
Barring Congressional action, more than 40,000 airline staff are due to be furloughed or laid off as a result of the crisis by November.
Related: US airlines ‘fighting for survival’ with no hope of V-shaped recovery
Updated with GoJet, Spirit Airlines furlough numbers.
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Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- 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. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- 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 Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- 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.
- 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.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees