US Aviation Industry: Employment slashed to lowest level in 3 decades
U.S. Bureau of Transportation Statistics has revealed that the airlines shed most jobs in 3 decades amid the novel coronavirus pandemic.
According to the details, the Bureau in its latest report said that the culling was followed the expiration of employment protections under the federal coronavirus aid package, or CARES Act, on September 30.
As per the recent estimates, the North American carriers are forecast to lose as much as $46 billion this year, whereas Passenger traffic is expected to fall by more than half. The airlines posted more than $17 billion in profits in 2019.
On the other hand, the Airlines have promised to bring back furloughed staff if Congress extends support. But, it remains to be seen how long these promises will stand amid the still struggling air travel recovery.
In May this year, United States National Carrier, American Airlines revealed plan to slash 30 percent of its management and support staff as it tries to deal with the dramatic downturn brought on by the novel coronavirus pandemic.
Executive vice president Elise Eberwein, “Although our pre-pandemic liquidity, the significant financial assistance provided by the government, and the cash we’ve raised in the capital markets provide a foundation for stability, we need to reduce our cost structure, including our most significant expense – the cost of compensation and benefits,”
The coronavirus outbreak and subsequent travel restrictions have put airlines the world over under immense pressure.
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