American and United Airlines preparing to furlough 32,000 employees due to no aid

We know that the airline industry is one of the worst-hit industries due to the Coronavirus which is obvious because the thing that people would do right now is travelling. It is also worth noting that most of the countries have sealed their international borders meaning that casual travelling for recreational purposes is not possible even if they wanted to. So it basically means that the airline industry finds it hard to survive anymore and a Coronavirus aid was sought after by the airlines in the US. However, it looks like such aid is not coming which means the airlines have to do the inevitable.

United Airlines, as well as the American Airlines, had already said that the idea of cutting jobs is not out of question and they said that Coronavirus aid is the only option to save jobs. However, since the aid is not coming, they have announced to furlough 32,000 of their employees and it is taking place right now. But the good news is that both these airlines have said that they can reverse the decision if aid comes. All in all, this is a way to put pressure on the government in order to reach an aid as soon as possible.

It is worth noting that a previous aid from the Trump administration in form of a federal payroll prohibited the airlines from furloughing employees until Oct 1 but it has not been extended which means the companies are free to cut jobs after the October 1 deadline. Another $25 billion in federal payroll support is sought after by the airlines but a deal has not been reached on the same so far. United Airlines have announced furloughing 13000 people while American Airlines have let off 19000 people due to the losses. Both companies agree to call back employees if aid arrives though.