Delta Asks Employees to Take More Unpaid Leave in 2021
Air travel has been picking up lately with new record numbers of people flying over the Thanksgiving weekend. Travel demand is much improved since back in March when the coronavirus pandemic shut down the country. But new coronavirus cases in recent weeks have slowed down the rebound. So airlines are not getting the expected numbers of passengers and looking for more cuts.
After the Thanksgiving spike in travel, Transportation Security Administration said it screened just 501,513 people at U.S. airports on Tuesday. That’s the fewest since July 4 and about a quarter of the 1.9 million people that traveled on the same da last year.
Delta Air Lines is the latest domestic carrier looking for ways to limit losses due to lower demand. Its CEO on Wednesday asked employees to sign up for more unpaid leave with the travel slump expected to continue into 2021.
“With COVID-19 cases increasing in recent weeks, we know the recovery continues to be choppy,” Delta Chief Executive Ed Bastian said a memo to employees, according to Reuters. “I ask everyone to consider whether a voluntary leave makes sense for you and your family,” he added.
More than 40,000 Delta employees have opted for unpaid leaves of absence already. Roughly 18,000 of them accepted buyouts and early retirement packages.
Airlines are hoping for travel demand to show real signs of rebounding in the spring once vaccines becomes widely available. Three companies already have vaccines that could soon hit the market.
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