In this Wednesday, June 24, 2020, file photo, Southwest Airlines jets sit at gates at Love Field in Dallas. On Thursday, Dec. 3, 2020, the airline warned nearly 7,000 employees that they could lose their jobs unless labor unions accept concessions to help Southwest cope with a sharp drop in travel during the pandemic. (AP Photo/Tony Gutierrez, File)
By David Koenig
Southwest Airlines is lifting the threat of furloughs or pay cuts for thousands of workers now that U.S. airlines will get up to $15 billion more in taxpayer aid contained in the coronavirus-relief bill.
American and United Airlines, which together furloughed 32,000 employees in October, said Monday they will bring those workers back temporarily.
The $900 billion relief package signed after some delay by President Donald Trump on Sunday night includes $15 billion for airlines to keep all their employees on the payroll through March 31. A previous round of $25 billion in payroll aid expired on Sept. 30, leading to the furloughs at American, United, and smaller carriers.
Delta and Southwest avoided furloughs by convincing thousands of workers to take voluntary buyouts or early retirement and, in the case of Delta, negotiating contract concessions from pilots. This month, Southwest warned nearly 7,000 workers that their jobs could be in danger if their unions did not accept pay cuts of about 10%.
Southwest Chairman and CEO Gary Kelly told employees Monday that federal relief “was always our preferred plan, and it means we can stop the movement toward furloughs and pay cuts that we previously announced.”
Kelly said Dallas-based Southwest doesn’t expect the need for any furloughs or pay cuts in 2021. But, he added, the airline is "still overstaffed in many areas,” and he appealed to employees to consider voluntary time off.
A spokesman for United said Monday the airline was still working on details for temporarily bringing back 13,000 furloughed workers through March.
Last week, after Congress passed the latest relief measure, American Airlines CEO Doug Parker said his carrier would recall 19,000 furloughed workers and make their pay and benefits retroactive to Dec. 1. A spokesman said Monday that American also intends to soon restore flights to smaller cities that were dropped this fall after a federal requirement to maintain those flights expired.
This spring, as the pandemic caused a nosedive in travel, airlines warned of massive layoffs unless Congress provided federal aid. That led in March to the first round of taxpayer assistance – up to $25 billion to cover payrolls for six months, and another $25 billion in low-interest loans. Some airlines turned down the government loans.
This fall, with travel still well below half of 2019 levels, airlines lobbied Washington for another round of aid, and they were rewarded.
The rapid development of vaccines has again raised hopes for a recovery in travel, maybe in time to salvage the key summer vacation season. However, a new strain of the coronavirus in the United Kingdom has led to new travel restrictions in Europe and sent another shiver through the airline industry.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
