Travel Slow to Recover — Layoffs Probable

Travel Slow to Recover — Layoffs Probable

(AmericanProsperity.com) – Over the past few months, the coronavirus stimulus packages provided relief to many industries, making it possible to pay employees until they could work again. However, for many in the travel industry, it won’t pick up anytime soon.

Over 75,000 US airline employees may lose their job on October 1, when a $25-billion federal aid package expires. There are talks of another airline payroll bailout in the upcoming stimulus package, but no one knows when or if the next relief bill will be approved.

American Airlines, Delta, and United all expect to furlough employees on October 1, although Southwest vowed it will not. Their Chairman and CEO Gary Kelly pushes for a payroll support extension:

The four largest US airlines lost over $10 billion in the last quarter. Even if the aid package comes through in September, many pilots and airline employees will not have a job to come back to, simply due to lack of demand. This year’s Transportation Security Administration (TSA) screenings are at 30% compared to the same time last year.

Every economy has highs and lows over time. But, the coronavirus pandemic came on fast, leaving many companies at a loss for how to keep running. As tens of thousands of workers potentially leave the travel industry in the coming months, we will need new jobs for them to fill.

~Here’s to Your Prosperity!

Copyright 2020, AmericanProsperity.com