The aviation industry is still feeling the effects of the
pandemic. After some world-renowned companies fired thousands of employees and
received governmental aid, things are still not too rosy.
The US airlines such as American Airlines,
#Delta, Southwest,
and many more, took advantage of the $25 billion stimulus package put at their
disposal by the US government. Despite the $5.4 billion received, Delta
Airlines is still struggling.
Delta
announced that in October, almost 2,000 pilots would be furloughed if a
cost-cutting deal doesn't go through with the employees' labor union. The job
cut will take place after the September 30 deadline imposed by the agreement
made with the government. Airlines that accepted the stimulus package are
prohibited from cutting staff by the end of September.
Besides the announced cut, another 1,800 pilots took early
retirement packages. Still, it is not enough the avoid the furloughs. According
to Delta, the remaining pilots could prevent a future furlough if they agree
with a 15% cut to minimum pay.
The negotiations have
been on for quite a while, but both parties have failed to reach an agreement.
During today's premarket session, Delta stock price added
0.17%.
Sources: cnbc.com
