US carrier Delta Air Lines has reportedly revealed that more than 15,000 of its employees have shown interest for early buyout packages.
The development would allow the carrier to avoid involuntary furloughs, which is expected to happen later this year, Reuters reported citing a person familiar with the matter.
Last month, Delta reportedly considered informing more than 2,500 pilots about its intention to send Worker Adjustment and Retraining Notification Act (WARN Act) notices in coming weeks.
The deadline for the majority of Delta employees to accept early departure or early retirement packages was yesterday (13 July).
Scheduled to report its second-quarter results today (14 July), the company signed a letter of intent (LoI) to access loans if needed from the federal government under the CARES Act.
Alaska Airlines, JetBlue Airways, United Airlines, and Southwest Airlines also signed LoIs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUS carriers are prohibited from payroll reductions or decreasing staff pay rates until 30 September according to the $25bn government support package.
In a separate development, American Airlines reportedly planned to warn employees this week about potential furloughs.
The carrier planned to secure $3.5bn in new financing as it addresses the impact inflicted by the coronavirus (Covid-19) pandemic restrictions.
American Airlines also announced that ‘it is overstaffed by about 20,000 people’.
In addition, United Airlines also sent warnings to 45% of its frontline workers for potential furloughs last week.
