US airlines cheer government relief but warn it is no 'cure' for deep industry crisis

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United Airlines Holdings Inc and Delta Air Lines pledged to maintain staff until Sept. 30 thanks to a government relief package passed on ...

CHICAGO: United Airlines Holdings Inc and Delta Air Lines welcomed on Friday a US$50 billion relief package they said would protect jobs through September but warned that the continued challenges facing the industry will require more action.

Based on projections for the spread of the coronavirus and the global economy's reaction, Chief Executive Oscar Munoz and President Scott Kirby said they expect"demand to remain suppressed for months after that, possibly into next year." U.S. airlines are set to receive US$25 billion in grants to cover payrolls over the next six months, but are still encouraging workweek reductions, unpaid leaves and early retirements to further cut costs as they face more cancellations than bookings.Before the global crisis, U.S. airlines were transporting a record 2.5 million passengers a day.

Airlines expect to learn the terms of the aid in the next five to 10 days, senior United executives said, and trust they will not be so onerous that airlines would not apply.

 

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