Airlines and unions seek more federal aid with travel demand still low

International President of the Association of Flight Attendants, Sara Nelson, joins airline executives, fellow union leaders and political leaders to ask Congress to approve an extension of the Payroll Support Program to save thousands of jobs during a press conference outside the U.S. Capitol on September 22, 2020 in Washington DC.

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Some airline and union executives are seeking a third round of billions in federal aid, while tens of thousands of workers again face licenses with travel demand still depressed in the Covid pandemic.

The current $ 15 billion aid round expires on April 1, and American Airlines and United Airlines last week warned that they could cut some 27,000 jobs. These funds required airlines to call back workers who were laid off in the fall and keep their current jobs.

“Essential workers have lived through incredible chaos and uncertainty. Leave is felt by the entire workforce,” said Sara Nelson, international president of the Flight Attendants Association-CWA, the country’s largest flight attendants union, in testimony written in a House hearing Thursday. “A continuation of [payroll support] can not wait. “

Congress set aside $ 25 billion in aid to keep employees on payroll at the start of last year’s pandemic, which required them to keep jobs until October 1. A $ 15 billion aid package was approved in the last coronavirus relief bill in December. the same terms until March 31. Airlines and unions now want another $ 15 billion to secure jobs by September 30.

“We fully support the efforts of our union leaders to fight for an extension and we will lend our time and energy to support this effort in any way we can,” said American Airlines CEO Doug Parker and President Robert Isom in a note from team announcing 13,000 break notices on Wednesday. “Our country’s leaders understand the vital role that airline workers play to keep the country moving. They showed their support last year and we will encourage them to do the same again, while the pandemic continues around the world. “

Last week, United Airlines told the team that “it is continuing to monitor demand and to advocate continued government support, and we are all working hard to bring back our dismissed co-workers permanently.”

Travel demand is still weak. US airlines lost a record $ 34 billion in 2020 and warned that they expect a rough start to 2021 as they face new travel restrictions and test requirements.

Last month, the United States began demanding proof of Covid’s negative tests to board flights to the United States. The Centers for Disease Control and Prevention are now “actively seeking” to make Covid testing mandatory for domestic travel, something the industry is vehemently opposed to.

Asked whether the industry should receive a third round of federal aid, JetBlue Airways CEO Robin Hayes told CNBC on Monday that the travel and hospitality sector is among the most affected parts of the economy and needed support.

“I think it is right and natural that this is where support should be targeted,” said Hayes.

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