Delta Air Lines will furlough 1,941 pilots as travel demand remains low due to border restrictions imposed to fight the Covid-19 pandemic.
The furlough will take place in October unless the company can seal a cost-cutting agreement with the employees’ labor union, according to the airline's announcement.
US airlines that were given $25 billion in federal aid are banned from slashing jobs through September 30.
“We are six months into this pandemic and only 25% of our revenues have been recovered,” said John Laughter, Delta’s senior vice president of flight operations in a memo to pilots. Laughter pointed out that the airline does not see a quick recovery in demand.
Delta previously warned 2,558 of its pilots about potential furloughs. The number was reduced by more than 1,800 pilots who accepted early retirement packages, but Laughter pointed out it is not enough to dodge the furloughs altogether.
“With approximately 11,200 active pilots still on the roster following the September 1 [voluntary early retirement] departures, we are simply overstaffed, and we are faced with an incredibly difficult decision,” he wrote. Laughter added that the pilots hired on or after July 17, 2017 would be receiving letters within the week.
Delta announced last month that remaining pilots could dodge furloughs altogether with a 15% reduction to minimum pay.
Meanwhile, the Air Line Pilots Association, which represents Delta’s pilots, asked the company to present a solution. It previously recommended giving pilots voluntary time off with partial pay, but Delta and the union have not agreed on any terms.
“While we should be talking about real solutions to save jobs, Delta’s most junior pilots are facing unnecessary career uncertainty when ALPA has offered countless voluntary options to management to prevent furloughs from occurring,” said union spokesman and Delta first officer Chris Riggins, in a statement. “It’s not too late for management to complete discussions at the bargaining table and help mitigate the need to furlough.
According to Laughter, the company will need about 9,450 pilots for summer 2021, “which we expect will be the peak flying for the next 12-18 months.”
Meanwhile, Delta Air Lines said its COO Gil West will retire at the end of September after 12 years at the Atlanta-based airline. West began shortly before Delta’s 2008 merger with Northwest and was appointed Delta’s COO in 2014.
American Airlines
American Airlines announced that it will furlough about 25,000 front-line employees this fall as surges in coronavirus cases continue to paralyze travel demand.
According to American Airlines, the furlough notices for their employees, who make up 29% of its US mainline workforce, will be sent soon as the company aims to slash the workforce by October.
The airline asked its employees to apply for new extended leaves that can last up to two years or early retirement packages. This way, they will get more people off payroll as possible before being forced to involuntarily strike out their jobs.
The revenue of American Airlines in June was declined by over 80% than a year ago, CEO Doug Parker and President Robert Isom said in a note to staff.
“And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again,” they wrote.
