Airline CEOs plead with White House for more aid as over 30,000 face furloughs
Major U.S. airline CEOs are pleading with White House and Congressional leaders for more federal aid as more than 30,000 U.S. airline employees face furloughs in two weeks following the expiration of relief provided by the CARES Act.
On Thursday the CEOs met with White House Chief of Staff Mark Meadows. They are asking for an additional $25 billion in federal assistance that would prevent involuntary furloughs until the end of next March.
"It's not fair. It's not fair to them, not fair to our country, there's enormous bipartisan support, an extension of the payroll support program, which would keep those people employed. And the only problem we have is there's not a vehicle for getting it done," American Airlines CEO Doug Parker told reporters after the meeting.
In addition to jobs, Parker is concerned that smaller communities in the U.S. will be underserved after the CARES Act expires and airlines are no longer barred from cutting off service to an entire market.
American Airlines announced late last month that it will temporarily stop flying to 15 cities in early October.
"So we're just here to plead with everyone involved to get to a COVID package before Oct. 1," Parker said. "On Oct. 1, those people are furloughed ... and small communities will lose service."
A group of 16 Senate Republicans and over 200 House members have expressed their support for an extension of the payroll support program, but they have yet to reach an agreement.
On Wednesday, Parker and unions representing American Airlines employees sent a joint letter to Meadows, Treasury Secretary Steven Mnuchin and the House and Senate leadership, warning them that there "is no time to waste" for the nearly 20,000 American employees facing furloughs.
"It's not just our team members who are counting on our nation's leaders to lead," they wrote, "but tens of thousands of workers, families and businesses across the country. Our conversations with each of you suggest a deal is within reach."
Air travel is still only a fraction of what it was in 2019, and experts predict it is unlikely they will return to pre-pandemic levels until 2024.
United Airlines is only flying about a third of its schedule compared to last year.
"Our revenue is down even further in the third quarter and we expect it to be about 15% of what it was a year ago," United Airlines chief communications officer Josh Earnest told ABC News. "It makes sense that we're going to be a smaller company and a smaller airline after Oct. 1 in the midst of this pandemic."
Earnest said the key is making sure that they are ready for when they begin to see demand recover.
"We know it will, we just don't know when," he said.
