The ongoing U.S. travel crisis is causing thousands of job cuts as the aviation sector waits for passengers to return to the skies but braces for years of lower demand because of the coronavirus pandemic.
“This sudden drop in air travel has forced our customers to adjust to lower demand from airlines, many of which are seeking to defer or cancel airplane orders,” Spirit AeroSystems Chief Executive Tom Gentile told employees in an email seen by Reuters. “All indications right now tell us this lower demand for new commercial airplanes is likely to last for several years.”
Delta Air Lines Inc said last week it does not expect air travel to recover for two or three years. More than 37,000 Delta employees have volunteered to take unpaid leave lasting from one month to a year. U.S. airlines last month collectively were awarded $25 billion in Treasury cash grants but as a condition must not fire workers or reduce through Sept. 30.
United Airlines is reducing working hours by 25% for 15,000 employees starting May 24, drawing criticism from an employee union and some U.S. lawmakers who contend that the move violates the terms of the $5 billion payroll assistance United is receiving from the Treasury.
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