Southwest Airlines CEO has told employees directly – we will not have any layoffs on Oct. 1.
That’s the expiration date that domestic carriers who accepted grants and loans from the federal government in March as part of the CARES Act stimulus package agreed to when told they could not lay off staff for six months.
In a letter to employees obtained by FOX Business, Kelly assured Southwest workers they will still have a job come the fall.
“I want you all to know we will not furlough or layoff any Southwest employees on October 1, unlike our major competitors,” Kelly wrote. “Further, we have no intentions of seeking furloughs, layoffs, pay rate cuts, or benefits cuts through at least the end of this year.”
Kelly acknowledged that while he “can’t guarantee it will never happen,” he promised it will be “the last thing we do to keep Southwest financially healthy and viable.”
Airlines were devastated by the coronavirus pandemic, at one point slipping to just five percent of capacity when compared to the same April time period a year ago. The carriers have slowly been rebuilding their passengers as demand has risen and restrictions have been loosened.
Delta Air Lines aid earlier this month it could avoid furloughs if enough pilots agreed to a 15 percent paycut, while American Airlines warned that it could be overstaffed by 20,000 workers come the fall.
Southwest is hoping that the final three months of the year continue to grow in terms of passenger demand, especially as we get closer to the holidays and people travel to see family.
“You all have helped to build the greatest airline in history, and I value and appreciate every single one of you,” Kelly added. “You are the reason we are prepared for the siege ahead, and you are the ones who can dig us out of this crisis. I can never thank you enough.”
Almost 17,000 Southwest employees have also applied for the airline’s Voluntary Separation Program and COVID-19 Extended Emergency Time Off, allowing the company to reduce capacity in the fourth quarter by roughly 25 percent.
