United Airlines warns staffing cuts to come as it slashes May flying by 90%
United Airlines executives warned of further capacity and staffing cuts to come Wednesday, just a day after the company accepted payroll assistance from the U.S. government's $2 trillion coronavirus bailout package.
The Chicago-based carrier will dramatically cut capacity with plans to shrink its network by roughly 90% in May, United CEO Oscar Munoz and president Scott Kirby told staff in a letter Wednesday night. But the flying reductions are only the supply-half of the picture.
"Travel demand is essentially zero and shows no sign of improving in the near-term," they said. "We expect to fly fewer people during the entire month of May than we did on a single day in May 2019."
Get Coronavirus travel updates. Stay on top of industry impacts, flight cancellations, and more.
Traffic on U.S. carriers was down 97% year-over-year during the seven-days ending April 12, according to Airlines for America (A4A). The industry group draws data directly from member airlines, including United and other majors American Airlines, Delta Air Lines and Southwest Airlines.
International Air Transport Association (IATA) director general Alexandre de Juniac has called the impact of COVID-19 on the industry the "biggest crisis we have ever had in front of us."
The U.S. government set aside $50 billion in aid to get airlines through the crisis in the bailout package known as the CARES Act. At least 10 carriers have received payroll assistance funds, including $5 billion for United. As a condition of the aid, airlines cannot involuntarily furlough or layoff staff through Sept. 30.
Once those protections lift, Oct. 1 stands to be a dark day for many airline employees across America.
Related: US airlines' first bailout aid was tougher to get and came with more strings than expected
"The challenging economic outlook means we have some tough decisions ahead as we plan for our airline, and our overall workforce, to be smaller than it is today, starting as early as October 1," Munoz and Kirby said Wednesday.
More than 20,000 employees at United have already taken voluntary unpaid leave, they added.
Ed Bastian, CEO of Delta, has similarly warned of the likely need to right-size the carrier's staff along with its operations later this year.
"I think this industry is going to be smaller for some period of time here as we build back, and I don't know what that pace of recovery will be," Bastian told employees on April 8. "It will really be dictated based on when customers feel safe to travel again in large numbers."
Related: United Airlines says revenue is down by $100M a day because of coronavirus
As many as 125,000 airline staff could be furloughed or laid off if the industry contracts by roughly 30%, Cowen analyst Helane Becker estimated in an April 13 report. That could mean up to 27,000 people lose their jobs at United, and another 25,000 at Delta.
"If we want to emerge stronger, if we want to emerge the world's leading airline on the other side of this, we have to have flexibility," Kirby told employees during a virtual town hall on April 2. But that flexibility will likely mean economic pain in the form of unpaid leave or fewer hours for many in the short term.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express 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.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees