United Warns of Layoffs if No Bailout by April
United Airlines Holdings (NASDAQ: UAL) on Friday afternoon urged workers to lobby lawmakers for an airline industry assistance package, warning that layoffs will begin in April if a government bailout plan isn't adopted by then.
The airlines have been severely disrupted by the pandemic, with the global industry expected to lose more than $100 billion in revenue in 2020 due to travel bans and plummeting demand. The airlines have responded by cutting flights, raising new capital, and freezing hiring, but executives say more is needed.
The U.S. industry has requested about $50 billion in assistance in the form of loan guarantees and direct grants, but that request has hit pushback from some who advocate direct assistance for workers and critics who note the airlines in recent years have used substantial amounts of free cash to do share buybacks.
Source Fool.com
