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Southwest promises no furloughs through end of 2020
Southwest Airlines says it will not be furloughing or laying off any workers on 1 October.
It has avoided lay-offs for now due to a big interest in taking voluntary separation packages and extended unpaid leave.
Southwest CEO Gary Kelly said it won’t entirely rule out job cuts indefinitely but there will be none ‘at least until the end of the year.’
The airline says 17,000 of its workers applied for leave or take extended time off.
"I can’t guarantee it will never happen, especially during these dark pandemic times. I can promise you it will be the last thing we do to keep Southwest financially healthy and viable," Kelly said in a memo to its 60,000 workforce.
"To deal with the financial crisis, we scrambled to cut spending and raise more cash from multiple sources."
Southwest has never made compulsory jobs cuts in its 49-year hostory.
Government payroll protect funding for airlines is due to run out at the end of September.
It also secured $3.2 billion in federal loans under the CARES act.
The airline said it will continue capping capacity on flights through October 2020 so that middle seats remain empty.
by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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