• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
Logo

Business Chew

Empower Your Business with Expert Advice and Tools

  • Business
  • Entrepreneurship
  • Finance
  • Marketing
  • Strategy
  • Tech
  • Tools
    • Amortization Calculator
    • Franchise Directory
    • Paycheck Calculator
    • Tithe Calculator
Home » Airlines say government aid ‘not a cure’ for coronavirus impact on travel

Airlines say government aid ‘not a cure’ for coronavirus impact on travel

Last Updated on April 23, 2020 by Jeff Long

Airline Coronavirus Impact

United Airlines on Friday cautioned that it expects a protracted slump in travel requirement due to the coronavirus, which will probably require the company to have a bigger work force, whilst Delta asked for volunteers to take unpaid leave after near a quarter of their carrier’s workers raised their hands.

The message has been the hottest in a succession from executives who don’t anticipate a fast U.S., or worldwide, retrieval in the coronavirus pandemic. The USA has discovered over 97,000 instances of COVID-19.

Layoffs or furloughs in United, which had roughly 96,000 workers at the end of this past year, are not imminent. The coronavirus help bill provides $25 billion in grants to U.S. passenger drivers, given they don’t furlough or reduce the pay of the employees through Sept. 30. United executives dedicated to this on Friday.

United is trying to reduce its prices by asking workers to take unpaid leave, though some employees is working a reduced program. Airlines such as United, are trying to exhaust voluntary leaves, such as early retirement programs, before turning into furloughs or layoffs.

Delta Air Lines CEO Ed Bastian on Friday also said the firm would not cut cover or furlough employees through this period and said that the government help would not fix the downturn in demand.

“While this support is welcome, it is important to keep in mind that the aid package isn’t a cure for its unprecedented challenges we confront,” Bastian told workers in a memo. Some 21,000 employees have volunteered for unpaid leave in different phases.

The cost from the virus along with draconian measures like stay-at-home orders and efforts to prevent COVID-19 from spreading is already reverberating through the U.S. market. Unemployment claims jumped into a list of 3.28 million from the week ended March 21.

U.S. airlines, that use some 750,000 individuals, have been one of the companies hardest hit from the coronavirus. Strict travel limitations and worries about contracting the disease while traveling have pushed down demand. A delicate market will also mean fewer profitable business trips and holidays for customers.

Their global operations are cut into the smallest in years.

Executives have cautioned that their decreased programs are drawing couple travelers. Chicago-based United has cut its own April program by over 60 percent and anticipates planes to fly less than 20% complete or at the single digits sometimes, the executives said.

Kirby and Munoz commended their workers along with also a”deep-seated tradition of caring for one another.”

“When traveling demand yields — and it will return — we’ll bounce back and plan to accelerate towards our aim of getting the best airline in the history of aviation,” they stated.

Related posts:

Warren Buffet Berkshire HathawayBerkshire Hathaway has the funds to buy Tesla, Starbucks, or McDonald’s after the coronavirus sell-off Wind FarmWind energy had huge year in 2019, but COVID-19 poses tough challenge Google is offering $340 million in free ads credits for small businesses for coronavirus support program These Industries Are Now Booming Because of COVID-19

About Jeff Long

Jeff Long is a Senior Editor at BusinessChew. He writes about trends in technology and business that impacting the world.

Primary Sidebar

Trending Now

  • Cheap Franchises to Start
    8 of the Best Cheap Franchises Under $1,000 [Updated for 2022]
  • Low cost food franchises
    The Best Food Franchises Under $10K
  • How To Make Your Packaging Process More Eco-Friendly
    How To Make Your Packaging Process More Eco-Friendly
  • Tips To Help You Stay Productive While Working From Home
    Tips To Help You Stay Productive While Working From Home
  • Tips for Becoming a Better Business Leader
    Tips for Becoming a Better Business Leader

Footer

Resources

  • Amortization Calculator
  • Franchise Directory
  • Paycheck Calculator
  • Tithe Calculator
  • Best Triple Monitor Mounts and Stands for 2022
  • 9 of The Best Laptops for Working from Home
  • Best Business Podcasts: Top 5 Must Listens for 2021

Recent Articles

  • How To Start Dropshipping – A Complete BluePrint
  • 10 Simple Businesses Anyone Can Start with $500 or Less
  • How to Start a Pressure Washing Business [2023 Guide]
  • 3 Reasons So Many Manufacturers Use Stainless Steel
  • What To Look For When Purchasing New Construction Equipment

Search

Copyright © 2023 · BusinessChew.com