United Airlines (NASDAQ: UAL) CEO Oscar Munoz and president J. Scott Kirby have issued a statement to nearly 100,000 United Airlines employees on the passage of the CARES Act, the company said.
Congress passed an emergency COVID-19 response bill that includes significant financial backing for the airline industry. This decisive, bipartisan action by elected leaders in Washington, D.C. is good news for the country, the economy, the health care system, the industry and the United Airlines family.
The impact of COVID-19 on demand for air travel has been dramatic and unprecedented — far worse than even the aftermath of 9/11. This federal assistance buys time to adapt to this new environment and assess how long it will take for the economy to begin to recover. United will not conduct involuntary furloughs or pay cuts in the US before September 30th.
The global economy has taken a big hit, travel demand is not expected to snap back for some time. United´s April schedule is already cut by more than 60% and load factors are expected to fall into the teens or single digits even with 60% less capacity. The company plans to make even deeper cuts in May and June.
In 2019, United and United Express operated more than 1.7 million flights carrying more than 162 million customers.