The fate of the people is in the hands of the White House
The employment situation seems to take a turn for the worse, as the latest events show. A couple of days ago, Disney stated that it would lay-off 28,000 employees; now, two of the largest US airlines will start to #furlough people.
American Airlines and United Airlines announced that they would furlough 32,000 employees if the White House disagrees on a stimulus package in the upcoming days. The former's CEO Doug Parker said that his company would reverse the 19,000 furloughs if Washington agrees on a $25 billion stimulus package for airlines. His statement was backed-up by the United representatives.
Currently, the Treasury Secretary Steven Mnuchin and the House Speaker Nancy Pelosi are negotiating a possible $2.2 trillion stimulus package. However, the White House is aiming to a lower amount - $1.5 trillion. The airlines are willing to wait beyond the Thursday deadline if the House and Senate are close to a deal. "Ideally, if it's going to go beyond Thursday, they will be close to a deal and say, 'Hang on for a couple of days,' and we can wait," said Nicholas Calio, president of the trade group Airlines for America. "Beyond that, the notices have gone, and furloughs will go into effect."
Due to the #pandemic, US air travel is 70% lower compared to last year's numbers. The modest signs of recovery showed over summer faded as the number of COVID-19 infections spiked again.
After the news hit the wire, American Airlines' stock price ended the trading session 0.33% higher.
Read here all about Disney's situation!
Sources: marketwatch.com, finance.yahoo.com