Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

U.S. airlines cut 29,000 workers through mid-October: Transportation Department

Published 12/03/2020, 11:45 AM
Updated 12/03/2020, 01:55 PM
© Reuters. A person walks at Reagan National Airport ahead of the Thanksgiving holiday in Arlington
LUV
-
DAL
-
AAL
-

By David Shepardson

WASHINGTON (Reuters) - The U.S. passenger and cargo airline industry saw total employment fall by nearly 29,000 workers through the month ending in mid-October as government restrictions on laying off staff expired.

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

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

In October, American Airlines (NASDAQ:AAL) and United Airlines said they were furloughing more than 32,000 workers after the prior $25 billion payroll assistance program expired on Sept. 30.

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

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

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

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

© Reuters. A person walks at Reagan National Airport ahead of the Thanksgiving holiday in Arlington

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.