Delta won’t quit 1,700 pilots, but Southwest job cuts are possible



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Delta Air Lines planes sit on the tarmac at Kansas City International Airport.

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DALLAS – Delta Air Lines on Wednesday dropped a threat of dismissal of more than 1,700 pilots after it ratified a cost-cutting deal the airline said was needed to help it cope with a slowdown caused by the pandemic.

The airline had planned to lay off around 13% of its 12,900 pilots on Saturday if a cost-cutting deal was not reached.

The deal does not reduce pilots’ pay rates, but it indirectly reduces their pay by reducing guaranteed monthly working hours by up to 5%. In return, Delta has promised not to let the pilots on leave until January 1, 2022.

The Air Line Pilots Association said about four-fifths of its Delta members voted and 74% of those had ratified the deal.

The union said the 1,713 pilots who were reportedly fired would receive 30 hours of pay per month and retain their benefits. They will not fly but will be notified if they can be called back to duty, the union said.

Delta DAL based in Atlanta,
+ 0.07%
also cut the hours of work for ground workers to save money, but avoided time off – layoffs of unionized workers who have the right to rehire. American Airlines AAL,
+ 0.81%
dismissed 19,000 workers and United UAL,
+ 1.51%
reduced by about 13,000 in October after billions of dollars in federal aid were exhausted.

Southwest Airlines LUV,
+ 0.04%
has warned its unions that their members could face the first time off in Southwest history if they do not accept concessions in return for job security until 2021. The airline says that she’s overworked by a billion dollars.

Dallas-based Southwest has sent letters warning more than 1,900 workers their jobs could be cut starting in late January unless the airline gets union concessions or increased federal aid.

Across the industry, tens of thousands of other employees took buyouts or early retirements this year as airlines’ financial health worsened.

Air travel to the United States remains down more than 60% from a year ago, forcing airlines to report billions in losses.

Delta chief of operations John Laughter told pilots in a note on Wednesday that the airline’s recovery from the pandemic would be patchy. He said the recent increase in virus cases was affecting bookings for the holiday season.

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