United warns Covid stimulus job recalls only temporary

Monday, 23 Dec, 2020 0

As United Airlines prepares to recall thousands of furloughed workers, it is warning them it is likely only for a temporary period.

With the new $900 billion Covid relief package agreed in principle, airlines will get $15 billion for Payroll Support Program costs through March 2021.

"It is certainly good news for our economy, our industry, and our airline," United said but ‘we don’t expect customer demand to change much between now and the end of the first quarter of 2021.’

CEO Scott Kirby and President Brett Hart cautioned against too much optimism that the worker recalls will be permanent.

"There are still some details to work out before the PSP extension is finalized, and we expect that you will hear from your leaders over the next several days," they said.

"The truth is, we just don’t see anything in the data that shows a huge difference in bookings over the next few months."

United and American Airlines could recall as many as 32,000 workers impacted since October 2020 when the previous Covid relief aid expired.

"We are already starting to work through the details of how we will bring back team members, but we’re not over the finish line yet," American CEO Doug Parker and President Robert Isom said in a memo.

The relief package itself is a temporary measure due to the change at the White House to a Biden Administration.

Written by Ray Montgomery, US Editor

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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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