#United, American start furloughs of 32,000 airline workers

Two major US airlines started furloughing more than 32,000 workers Thursday as federal funding to keep them on the payroll ran out.

American Airlines said it would sideline some 19,000 employees while United Airlines will furlough more than 13,000 after the feds’ $25 billion Payroll Support Program for passenger carriers expired Wednesday.

Both companies said they would reverse the furloughs if Congress approves another bailout for the aviation industry.

But it’s uncertain that more aid will come as Congress and the White House continue negotiations on another spending package to address the fallout from the coronavirus pandemic.

“We implore our elected leaders to reach a compromise, get a deal done now, and save jobs,” Chicago-based United said in a Wednesday evening note to employees.

In a memo to American staffers, CEO Doug Parker said he was told by Treasury Secretary Steven Mnuchin that the White House and Democratic House Speaker Nancy Pelosi were getting close to a stimulus deal that would extend the payroll program.

But the House’s latest $2.2 trillion proposal was still far more expensive than what Senate Republicans have called for.

“Unfortunately, there is no guarantee that any of these efforts will come to fruition,” Parker wrote.

While the payroll aid has expired, the Treasury Department said this week that it had closed loans to United, American and five other big airlines to help them navigate the COVID-19 crisis.

United and American said in regulatory filings that they can borrow more than $5 billion under their loan deals, though the feds may make more money available.

Other recipients include Long Island City-based JetBlue, which revealed Thursday that it can borrow up to $1.1 billion.

Industry advocates and labor unions have urged lawmakers to give airlines more support as they grapple with a massive downturn thanks to the pandemic, which has led to lockdowns and travel restrictions around the world.

US carriers’ passenger volumes were 68 percent lower than last year’s levels in the week ending Sept. 20 despite recovering from a deeper collapse in the spring, according to industry group Airlines for America.