The Great Shrink: Pink slips flying at airline workers means painful autumn ahead

[Yo_Mama_Been_Loggin]

Without additional support from the U.S. Congress, it’s going to be an ugly fall for anyone at airlines.

AirInsight analyst Addison Schonland calls what is about to happen “The Great Shrink of 2020,” adding: “The next half of the year is going to be painful.”

The first round of $25 billion worth of government coronavirus pandemic bailout cash for airlines runs out Sept. 30, allowing rivals Alaska Airlines and Delta Air Lines to start resizing workforces Oct. 1 for much smaller flight networks.

A Business Journal survey found 72,435 U.S. airline workers are facing layoffs or furloughs in Seattle and elsewhere as the airlines try to match revenues and expenses. Another 34,900 are taking buyouts.

https://www.bizjournals.com/seattle/news/2020/08/14/airlines-warn-notices-layoffs-covid-19-pandemic.html

[HermitageHermit]

1. Congress inaction may help thin out the airline industry

This would be worse for airlines that are less well capitalized- and make for a more robust recovery for the more solvent businesses.

The Pandemic news looks like it may be a long term pill for the airline industry but if some airline companies go under it can be good news for those who survive as well as their staff. Of course that would be bad new for Boeing and other manufacturers of planes, regardless.