U.S. Airline Industry Lost Nearly 29,000 Jobs Due to Pandemic: Transportation Department
The U.S. airline industry had nearly 29,000 fewer jobs in mid-October than what it had before the pandemic first hit, according to the U.S. Transportation Department.
Data released by the department shows that the number of people employed by U.S. airlines in March fell by 81,749 to just over 673,000 workers last month.
The change, caused by a dramatic drop in travel demand due to the COVID-19 crisis, is still costing the industry billions of dollars a month, according to Reuters.
Overall the demand is still down more than 60%, but as the country deals with recent record-breaking surges in cases, recently enacted guidelines on travel will likely have an even more significant outcome.
While the pandemic has allowed cargo carriers to add new jobs, passenger carriers were forced to take drastic steps to adapt to the current environment.
The losses caused by the virus were felt across the entire industry.
American Airlines, the leading carrier in the U.S., reduced its payroll to 90,846, by eliminating 18,262 jobs, or 17% of its workforce, according to the government report.
United Airlines lost 29,243 employees, or a 32% reduction in its workforce.
Delta Air Lines also eliminated about 32% of its jobs, affecting 28,751 employees.
After a $25 billion payroll assistance program expired at the end of September, both American Airlines and United Airlines announced they were furloughing more than 32,000 employees.
On Thursday, Southwest Airlines told CNN that 6,800 employees could be furloughed in the spring. After reported losses of $2.75 billion through the first nine months of the year, the airline is on track for its first annual loss.
U.S. Treasury Secretary Steven Mnuchin said Wednesday that he backed another $20 billion in additional government payroll support for the U.S. airlines, Reuters reported.
“I think that would be very meaningful in terms of employment and saving the industry,” Mnuchin said at a House hearing.
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