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If the layoffs did take place, they would be the first in the carrier’s nearly 50-year history.
The total includes 2,551 ground crew who handle baggage, cargo and resupply aircraft, as well as 1,176 customer service agents, 1,500 flight attendants and 1,221 pilots. The airline said the cuts would take place on March 15 or April 1 for different groups of employees.
American airlines, including South West, (LUV) received a total of $ 25 billion in federal aid earlier this year on condition that it does not institute involuntary job cuts until the end of September. United (UAL) and American Airlines (AAL) put 32,000 employees on leave on October 1, the day the ban ended.
Delta Airlines (OF) avoided involuntary job cuts because employees accepted voluntary buyout and early retirement offers, and its pilots agreed to changes to their contracts that would reduce labor costs. But some 16,000 more job cuts were instituted or planned across the rest of the airline industry ahead of Southwest’s Thursday announcement.
Southwest is generally among the most profitable major US airlines. But it reported losses of $ 2.75 billion in the first nine months of the year, which also puts it on track for its first annual loss.
On Thanksgiving, U.S. airlines had their busiest week since mid-March, when the pandemic virtually cut off air travel. But United, Southwest and American have all warned investors they see a further drop in bookings as Covid-19 cases spike across the country, and public health experts have urged people not to travel during holidays if possible.
Southwest has asked the 12 unions representing the 83% of its employees who are unionized for pay cuts of about 10% to avoid time off. The airline told CNN it had made deals with its meteorological and dispatch unions.
An internal memo to employees noted that the airline is open to pay cut deals with other labor groups that would avoid the 6,800 impending holidays in 2021.
The memo said that “we are not closing the door – we will continue negotiations if union representatives want to continue working to find mutually acceptable solutions.”
Several airline unions continue to lobby Congress for a stimulus bill that includes payroll funding for their employees. But despite bipartisan support, there has so far been no additional help for the industry approved by Congress.
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