United Airlines Warns Furloughs Inevitable if Passengers Don't Return
United Airlines Holdings (NASDAQ: UAL) on Friday pledged to hold worker wages steady and do no involuntary furloughs before Sept. 30 but said that if the COVID-19 coronavirus pandemic keeps travelers away well past the summer some job cuts are inevitable.
The airlines have been decimated by the pandemic, which has caused flight demand to collapse. Lawmakers on Friday approved a $50 billion industry bailout as part of a broader $2 trillion economic stimulus plan, providing airlines with loans and grants to try to get them through the difficult times.
In a message to employees Friday, United CEO Oscar Munoz and president Scott Kirby thanked lawmakers for their "decisive, bipartisan action," saying the "federal assistance buys us time to adapt to this new environment and assess how long it will take for our economy to begin to recover." The execs said that because of the government aid there will be no near-term salary or headcount reductions for front-line employees.
Source Fool.com
