Former Spirit Airlines CEO Ben Baldanza predicts there will be a decline in business travel and airlines will have to rely more on recreational travel for revenue.
American Airlines employees need to focus on another round of warnings, as the airline expects to remain overstaffed on April 1, when U.S. aid for employees in the industry expires, Doug Parker said.
American is one of U.S. airlines that received money in December from a $ 15 billion wage support package to protect workers and salaries through March, when the industry hoped pandemic demand would recover with the rollout of vaccines .
US quarterly loss better than expected
“What did not happen is what we hoped would happen, that we would come until April 1st and say, oh my god … everyone we have will need them in the July schedule,” Parker said. said during according to a survey conducted by Reuters.
A US spokesman confirmed the truth of the survey.
U.S. aviation unions are calling on Congress to expand a third-round payment aid, something Parker said he would support.
“This is a much better solution than making people furious again when we know that it (COVID-19) is months away from extinction,” he said during City Hall.
Americans captured 19,000 workers when a first round of government wage support expired on October 1, but recalled them in December. Parker said he hopes fewer workers will be affected this time.
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Last week, United Airlines said it had sent 14,000 employees warnings.
U.S. airlines, which have had an annual record loss, hope vaccines can fuel a recovery, but the spread is slow and COVID-19 variants are causing drastic travel routes through some countries.
“I hate that we’re in that position, but we are and we can not ignore it, so we need to start figuring out what to do about it,” he said.
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Parker said new COVID-19 testing requirements for people entering the U.S. from abroad have further suppressed international travel demand.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 16.84 | -0.33 | -1.92% |
| DAL | DELTA AIR LINES INC. | 37.82 | -0.14 | -0.37% |
| LUV | SOUTHWEST AIRLINES CO. | 44.79 | +0.85 | + 1.93% |
Delta Air Lines and Southwest Airlines repulsed layoffs but reduced their workers through voluntary programs.