Airlines Carry Half a Million Passengers in One Day For First Time Since March

Airlines Carry Half a Million Passengers in One Day For First Time Since March

More than half a million air travelers passed through TSA checkpoints on Thursday, the highest number since mid-March. The Transportation and Security Administration (TSA) reported 502,209 screenings at US airports.

Airlines hit the milestone as over 400,000 passengers took to the skies on three separate days in the preceding week, in the clearest sign yet that air travel is beginning to slowly recover. 

While this number is less than a quarter of what is normal for this time of year, it represents a marked improvement over the lowest point on April 14, when only 87,534 travelers were screened at TSA checkpoints.  

The airline and travel industries are facing a perfect storm of suppressed demand because of COVID-related restrictions on in-person gatherings, high unemployment, and a negative feedback loop, where airlines cannot serve cities without higher levels of customer demand. 

To attract more passengers, airlines have aggressively cut fares and fees. These moves have brought in more travelers, but have also reduced revenue.  The addition of thousands of new passengers willing to fly brings airlines closer to financially breaking even. 

Airlines are growing again, slowly.

Despite the hardships, airline stocks are on the rebound, and insiders expect the industry might reach passenger loads as high as one million travelers a day by the end of July.

In a press release earlier this month, American Airlines announced it was planning to increase flight activity to 55% of normal capacity in July. The carrier added it is planning to increase its lucrative international routes back to 20% of 2019 levels.

United’s plans for July include restoring non-stop service in over 140 domestic routes and the airline will add flights to Europe and several cities in Asia, along with destinations in Latin America and the Caribbean. 

Hawaiian Airlines suspended most inter-island flights and has operated just one daily flight to Los Angeles since March 26 when Hawaii state officials instituted a mandatory 14-day quarantine for arriving passengers. The airline is planning to increase flight capacity by 18% when the quarantine mandate for inter-island travel is lifted on June 16. The quarantine for all passengers arriving from out-of-state will be in effect through July 31.  

Spirit Airlines is expected to triple the number of flights it operates at its home base in Fort Lauderdale (FLL). They expect to operate 70% of their schedule in July and are going ahead with plans to expand international destinations.

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All this is great news for anxious airline employees whose jobs are secure until September 30 thanks to payroll protection funding allocated by the CARES Act. Every airline is planning to have a much smaller workforce after that date due to uncertainty about whether the number of coronavirus cases can be contained until there is an effective vaccine or treatment, which is expected to take a year, possibly longer. Hundreds of airline employees have already taken some type of voluntary unpaid leave of absence, and the companies are unveiling a variety of early retirement programs. 

The Summer 2020 travel season will be very different for passengers and airline employees, but the industry as a whole hopes the recovery will be better and faster than forecasts show. 

 

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Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: “Reducing workers’ hours without their consent reduces workers’ paychecks in the same way that reducing workers’ rate of pay would.”

 

This week, Senator Bob Casey (D-PA) called on Treasury Secretary Steve Mnuchin to issue clear guidance to airlines and industry lobbyists stating that cutting the pay and benefits of airline workers violates the CARES Act, even if those cuts come by way of furloughing full-time workers to part-time. Senator Casey is a member of the Senate Committee on Finance, which played a major role in drafting the bill. 

Senator Casey said the clear intent of the CARES Act, which delivered billions of taxpayer dollars to airlines, was “specifically to protect the jobs and livelihoods of workers in the airline industry,” and that airlines could not reduce the pay of their workers after accepting relief funds.  Further, Senator Casey said in the letter that reducing full-time workers to part-time reduces their pay and benefits, despite leaving pay rates intact. 

“I write to express my concern that multiple air carriers have threatened to or are currently involuntarily reducing the hours of employees despite receiving payroll support under the Coronavirus Aid, Relief and Economic Security (CARES) Act,” Senator Casey said in the letter. “In passing this legislation, Congress made clear its intention that any air carrier receiving assistance must agree to maintain payroll and not cut employee compensation. I urge you to immediately issue guidance that makes clear that unilateral and involuntary reductions in employee hours are prohibited under the CARES Act.” 

Senator Casey also sent letters to the CEOs of United, jetBlue, and Delta, and to Airlines for America, the lead lobbying group for US air carriers, putting industry executives and lobbyists on notice about the importance of following the law and respecting workers.  

A growing number of lawmakers involved in creating the CARES Act have written to the CEOs of major airlines following a scheme by United Airlines executives to take billions in relief funds intended to cover payrolls – and then cut payrolls while keeping the money. United Executive Vice President Greg Hart tried to defend the move and said the furloughs weren’t really pay cuts because pay rates would remain the same. Senator Casey, who has a legislative record promoting economic security for working families, showed little patience for such word games. 

“This is in clear violation of Congress’ intent and should not be undertaken by any air carriers accepting federal assistance,” Senator Casey said. 

“Congress’ intent that air carriers use this assistance to fully protect workers’ compensation and employment was clear,” he wrote. 

IAMAW District Legislative Director David Roderick praised the actions of Senator Casey and other lawmakers who have come forward in defense of working families in the airline industry over the past two months. “Senator Casey is a true friend for airline workers. He’s been a trusted ally and strong voice for airline safety and the fair treatment of airline employees and passengers for years.” 

Read the full statement by Senator Casey Here >>

Do you live in Pennsylvania?

Lawmakers need to know that we appreciate their help. If you are a constituent of Senator Bob Casey, please take a second to let him know that our union values his assist.

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What do YOU Think?

Do you feel that furloughs before October 1st are a violation of the CARES Act…

…even if they are only furloughing full-time agents to part-time?

 

Rep. Crenshaw: United Must “Live Up to its Obligations”

Rep. Crenshaw: United Must “Live Up to its Obligations”

Another lawmaker has voiced support for the unionized ramp and customer service agents at United Airlines as they continue to push back against proposed furloughs at the airline. This week, Congressman Dan Crenshaw (R-Tx), issued a statement calling on United to “live up to its obligations” and abide by the rules of the CARES Act.

Congressman Dan Crenshaw, who serves the people of the 2nd Congressional District of Texas in the House of Representatives, responded to a constituent who contacted him after United Airlines announced cuts in the hours of work for over 16,000 airport and call center employees. In a letter, Rep. Crenshaw wrote: “I voted for the CARES Act because I understand the importance of sustaining our airline workforce during this difficult time.”

As a member of the House Budget Committee, Rep. Crenshaw helps craft the annual budget resolution which determines funding policies for the federal government. A former United States Navy SEAL and a member of the Republican Party, he was elected to Congress in 2018 on a platform that called for getting the country on a path towards “responsible spending.” In his letter, the congressman emphasized the safeguards Congress put in the CARES Act to ensure the proper use of funds and said, “This bill included accountability measures, and it is important for every entity that receives public funding to live up to its obligations.”

The largest of three major bills from Congress to address the economic impact of the coronavirus pandemic, the CARES Act provided $25 billion in relief funding for airlines to keep employees on the payroll.

Members of Congress like Crenshaw interact with airline employees during their frequent trips between their home districts and Washington, DC. He praised United employees in his letter and wrote, “You have kept our nation running, and it is uplifting to see the dedication on the frontlines.” The congressman pledged to “continue to focus on ensuring funds are spent as intended as the industry recovers and that safety measures are implemented to protect both workers and travelers.”

Do you live in the Houston area?

Lawmakers need to know that we appreciate their help. If you are a constituent of Congressman Dan Crenshaw, please take a second to let him know that our union values his assist.

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What do YOU Think?

Lawmakers are calling on airlines to fulfill the obligations they made to taxpayers and employees like us. How would you rate the job your airline has done so far?

 

Aloha, Kaulana

Aloha, Kaulana

Sisters and Brothers,

With deep sadness, I share the news that our Brother Kaulana Pakele, who served as Safety Director for District 141 at Hawaiian Airlines, passed away last night. Kaulana was surfing on Memorial Day near Makaha Beach in Oahu, Hawaii, when he went into distress and was rescued from the water.

Kaulana embodied the spirit of Aloha in everything he did: He proudly honored his Hawaiian and Polynesian culture in his work as an award-winning musician, and also fiercely defended the safety of his Brothers and Sisters in the Machinists Union.

He was born and raised in Hilo, on the Big Island of Hawaii, and was initiated into IAM Local 1979 in Honolulu in 2006 when he began working at Hawaiian Airlines. Kaulana was already an accomplished musician, and he took the job at the airline in part so he could enjoy traveling, as so many of us do. He became a Shop Steward and quickly took on positions of more responsibility, which led to his appointment as District 141 Safety Director for Hawaiian Airlines in 2016. He was a member of the contract negotiating committee for Hawaiian Airlines and also served on the IAMAW Joint Airline Transportation Safety Committee. 

We will miss Kaulana’s bright smile that would light up any room and his eagerness to liven up any gathering with his beautiful singing, but most of all we will miss our Brother whose dedication to the well-being and security of his brothers and sisters in our union is an inspiration to us all. 

We join Lisa, his wife for 23 years, his children, grandchildren, and his parents in their grief and ask that you keep them in your thoughts and prayers. We also share our loss with his friends and colleagues in the artistic community in Hawaii where he was beloved and admired. 

Aloha, dear Brother.

Mike Klemm

President and Directing General Chair, 
District 141,
International Association of Machinists and Aerospace Workers

Union Members at American Get $3,000 Bonuses This Week

Union Members at American Get $3,000 Bonuses This Week

Honoring Agreements, Union Members at American Get Bonuses This Week

Bonuses budgeted before the coronavirus pandemic spread widely in the United States are scheduled to go out today and tomorrow to union members in fleet service and aircraft maintenance at American Airlines. (The International Association of Machinists and Aerospace Workers and the Transport Workers Union represent workers at American in an alliance known as “The Association.”)

Qualifying fleet service workers will receive $3,000 signing bonus checks this week. 

To qualify for the payments, every union member must have been an active employee at American as of March 26, 2020. Union members on certain types of company and military leave will get the money when they return to work.

The agreements also call for cash payouts because of improvements in vacation accruals, which will add thousands more in retroactive compensation for some members.

The money will be paid out like regular paychecks. Statements showing the deposits should be visible in bank statements starting today.

The bonuses are part of agreements between American Airlines executives and their unionized fleet service workers, which were ratified by over 90% of eligible voting members of the IAM and TWU Association on March 26th. In a joint statement released after the agreements were reached, Sito Pantoja, Association Chairman, and Alex Garcia, Vice Chairman said: “Together, after more than four years, the terms of these agreements are proof that we took the right path and achieved the best contracts in the airline industry.”

Mike Klemm, President and Directing General Chair of District 141 of the IAM said that given the current status of the airline industry and the bleak forecasts, union members at American would be well-served if they are cautious about how they use their bonus paychecks. Echoing statements he made in a letter to IAM members at United Airlines, Klemm noted that without a substantial increase in demand for air travel, “furloughs at every US-based airline at the end of September are almost certain.” He added: “I urge you to save as much of this earned bonus as you can, and spend some time in the next few months to prepare for the storms we see forming on the horizon. We can only hope it turns out to be rainy days and not a tsunami, but our union will be with you and will use every resource at our disposal to defend your rights and your livelihoods, just like we did when we reached these historic agreements with American Airlines.”

Employees of American Airlines may submit questions about this payment via the company’s Payroll Service Center, at psc@aa.com.

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Machinists Union to Delta and JetBlue: You Are Not Above the Law

Machinists Union to Delta and JetBlue: You Are Not Above the Law

WASHINGTON, May 21, 2020 — The International Association of Machinists and Aerospace Workers (IAM) today reiterated its demand that Delta Air Lines and JetBlue Airways restore workers’ pay and benefits. Delta and JetBlue combined have accepted approximately $6.5 billion under the CARES Act in taxpayer-funded airline bailout money intended to maintain workers’ jobs, pay and benefits until at least Sept. 30, 2020.
Earlier this month, the IAM filed a federal lawsuit against United Airlines after the carrier announced similar plans to reduce all full-time ground workers’ hours, which would have reduced their pay and benefits. United then reversed course and suspended its plan.
“Delta and JetBlue may not have reduced hourly pay rates, but they did reduce weekly, monthly and yearly pay rates, just as United tried to do,” said IAM General Vice President Sito Pantoja. “The undeniable result is workers are involuntarily taking home less money to support their families. A pay cut is a pay cut.”
Both Delta and JetBlue applied for and received taxpayer funds under the Payroll Support Program component of the CARES Act, which required airlines to maintain workers’ jobs, pay and benefits as a condition of taking the funds.
In letters to the CEOs of Delta and JetBlue, 13 Senators led by Elizabeth Warren (D-MA) wrote, “Your workers supported relief for airlines on the condition that their jobs, pay, and benefits would be protected. On April 23, the International Association of Machinists and Aerospace Workers wrote you a letter opposing your mandatory time off policy, and noting that, ‘The IAM, along with the all the other AFL-CIO affiliated transportation unions, and Delta JetBlue workers, fought for the federal stimulus to protect airline workers and save the airline industry from the ravages of the novel coronavirus pandemic,’ but that your company is ‘using that good faith support of airline workers around the country and at every carrier to [undermine the interest of your own workforces].’”
“We called on Delta and JetBlue to reverse course over three weeks ago and they have thumbed their noses at their employees, Congress, and American taxpayers,” continued Pantoja. “Delta and JetBlue are not above the law and should immediately restore their workers’ pay and benefits as required under the CARES Act.”