United Cutting 50% for April and May
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United Cutting 50% for April and May
https://hub.united.com/2020-03-15-a-...645495847.html
A Message From Oscar Munoz and Scott Kirby
A Message From Oscar Munoz and Scott Kirby
March 15, 2020CHICAGO, March 15, 2020 /PRNewswire/ -- Oscar Munoz, Chief Executive Officer, and J. Scott Kirby, President, today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:
To our United family:
In the message we sent to you last Thursday, we promised to stay in close touch about the impact of the coronavirus on our business and the steps that we're taking to aggressively manage it.
In just the last few days, the impact of the coronavirus has really hit home and disrupted the daily routines of hundreds of millions of people in the United States and around the world. State and local governments continue to close schools, encourage people to avoid bars and restaurants and cancel more large gatherings. This weekend, President Trump announced new travel restrictions for the United Kingdom and Ireland. Watching this unfold, you won't be surprised to hear that the impact of the coronavirus on our business has also gotten quite a bit worse.
As the leaders of the 100,000 people of United, we feel a deep obligation to each of you to run our company in a way that protects you -- and your ability to provide for your family at home. We also owe it to you, especially in a crisis, to be open with you about important decisions we face.
We want to share some numbers to help you understand just how bad the impact of the coronavirus has been on our business. As you know, March is typically our busiest month of the year. But this year, in just the first two weeks of March, we have welcomed more than one million fewer customers on board our aircraft than the same period last year. We're also currently projecting that revenue in March will be $1.5 billion lower than last March.
The bad news is that it's getting worse. We expect both the number of customers and revenue to decline sharply in the days and weeks ahead.
Since late January, we have taken steps to aggressively manage this crisis and to keep you informed every step of the way - sharply reducing schedules, imposing a hiring freeze, introducing a voluntary leave program, dramatically reducing discretionary spending, cutting CEO base salary 100% and deferring a salary increase. Our competitors have started to follow suit: on Friday, Delta announced a 40% schedule reduction and a 100% salary cut for their CEO and over the weekend, American said it will reduce its international capacity by 75%.
We took early, aggressive action because we have been determined to do everything possible to avoid painful steps that affect your paycheck. But, based on the severity of the situation, that no longer appears realistic.
This weekend, we began conversations with our union leadership about how to reduce our payroll expense in a way that minimizes what we know will be painful for all of us. Earlier this evening, we convened a call with Corporate Officers to update them on the severity of the situation and let them know we will be cutting their salary by 50%.
Let us be clear: these are not the only next steps. Tomorrow, we will announce an approximately 50% cut in capacity for April and May. We also now expect these deep cuts to extend into the summer travel period. Even with those cuts, we're expecting load factors to drop into the 20-30% range -- and that's if things don't get worse.
Together, we're facing an unprecedented challenge. When medical experts say that our health and safety depends on people staying home and practicing social distancing, it's nearly impossible to run a business whose shared purpose is "Connecting people. Uniting the world."
We both hate to have to write a note like this, but we have made a commitment to be honest and transparent with you. While it's now clear that this is going to painful for our people, we promise that you are at the very top of our priority list. We are working night and day on support and ideas to keep as much pay as we possibly can flowing to you -- even if gets worse from here and demand temporarily plummets to zero.
This crisis is moving really quickly. It's having an impact on nearly every aspect of our lives, and it may feel to you like everything is changing. But, the most important thing about our business hasn't changed: you've shown us that even in these difficult times, we're still United and focused on caring for our customers and each other together. That's always been the essential ingredient to our success. It's what will get us through this crisis in the near term, and it's also what will allow us to fulfill United's incredible potential in the long-term.
We'll continue to communicate frequently and transparently in the days ahead.
With resolve,
Oscar and Scott
To our United family:
In the message we sent to you last Thursday, we promised to stay in close touch about the impact of the coronavirus on our business and the steps that we're taking to aggressively manage it.
In just the last few days, the impact of the coronavirus has really hit home and disrupted the daily routines of hundreds of millions of people in the United States and around the world. State and local governments continue to close schools, encourage people to avoid bars and restaurants and cancel more large gatherings. This weekend, President Trump announced new travel restrictions for the United Kingdom and Ireland. Watching this unfold, you won't be surprised to hear that the impact of the coronavirus on our business has also gotten quite a bit worse.
As the leaders of the 100,000 people of United, we feel a deep obligation to each of you to run our company in a way that protects you -- and your ability to provide for your family at home. We also owe it to you, especially in a crisis, to be open with you about important decisions we face.
We want to share some numbers to help you understand just how bad the impact of the coronavirus has been on our business. As you know, March is typically our busiest month of the year. But this year, in just the first two weeks of March, we have welcomed more than one million fewer customers on board our aircraft than the same period last year. We're also currently projecting that revenue in March will be $1.5 billion lower than last March.
The bad news is that it's getting worse. We expect both the number of customers and revenue to decline sharply in the days and weeks ahead.
Since late January, we have taken steps to aggressively manage this crisis and to keep you informed every step of the way - sharply reducing schedules, imposing a hiring freeze, introducing a voluntary leave program, dramatically reducing discretionary spending, cutting CEO base salary 100% and deferring a salary increase. Our competitors have started to follow suit: on Friday, Delta announced a 40% schedule reduction and a 100% salary cut for their CEO and over the weekend, American said it will reduce its international capacity by 75%.
We took early, aggressive action because we have been determined to do everything possible to avoid painful steps that affect your paycheck. But, based on the severity of the situation, that no longer appears realistic.
This weekend, we began conversations with our union leadership about how to reduce our payroll expense in a way that minimizes what we know will be painful for all of us. Earlier this evening, we convened a call with Corporate Officers to update them on the severity of the situation and let them know we will be cutting their salary by 50%.
Let us be clear: these are not the only next steps. Tomorrow, we will announce an approximately 50% cut in capacity for April and May. We also now expect these deep cuts to extend into the summer travel period. Even with those cuts, we're expecting load factors to drop into the 20-30% range -- and that's if things don't get worse.
Together, we're facing an unprecedented challenge. When medical experts say that our health and safety depends on people staying home and practicing social distancing, it's nearly impossible to run a business whose shared purpose is "Connecting people. Uniting the world."
We both hate to have to write a note like this, but we have made a commitment to be honest and transparent with you. While it's now clear that this is going to painful for our people, we promise that you are at the very top of our priority list. We are working night and day on support and ideas to keep as much pay as we possibly can flowing to you -- even if gets worse from here and demand temporarily plummets to zero.
This crisis is moving really quickly. It's having an impact on nearly every aspect of our lives, and it may feel to you like everything is changing. But, the most important thing about our business hasn't changed: you've shown us that even in these difficult times, we're still United and focused on caring for our customers and each other together. That's always been the essential ingredient to our success. It's what will get us through this crisis in the near term, and it's also what will allow us to fulfill United's incredible potential in the long-term.
We'll continue to communicate frequently and transparently in the days ahead.
With resolve,
Oscar and Scott
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An update:
March 17, 2020 CHICAGO, March 17, 2020 /PRNewswire/ -- United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to a continued drop in travel demand as a result of this outbreak and government mandates or restrictions in place prohibiting travel, the airline today announced a 60 percent schedule reduction in April - this includes a 42 percent reduction across the U.S. and Canada and an 85 percent decrease in international flights.
While United does not plan to suspend service to any single U.S. city now - with the exception of Mammoth Lakes, CA - the airline is closely monitoring demand as well as changes in state and local curfews and government restrictions across the U.S. and will adjust its schedule accordingly throughout the month.
https://hub.united.com/2020-03-17-un...645516655.html
United Airlines Further Reduces Domestic and International Schedules
March 17, 2020 CHICAGO, March 17, 2020 /PRNewswire/ -- United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to a continued drop in travel demand as a result of this outbreak and government mandates or restrictions in place prohibiting travel, the airline today announced a 60 percent schedule reduction in April - this includes a 42 percent reduction across the U.S. and Canada and an 85 percent decrease in international flights.
While United does not plan to suspend service to any single U.S. city now - with the exception of Mammoth Lakes, CA - the airline is closely monitoring demand as well as changes in state and local curfews and government restrictions across the U.S. and will adjust its schedule accordingly throughout the month.
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https://hub.united.com/2020-03-17-un...645516655.html
United Airlines Continues Draw Down of International Schedule
United Airlines Continues Draw Down of International Schedule
March 20, 2020
CHICAGO, March 20, 2020 /PRNewswire/ --
United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to government mandates or restrictions in place prohibiting travel, the airline is reducing its international schedule by 95% for April. The revised international schedule will be viewable on united.com on Sunday, March 22:
Atlantic
CHICAGO, March 20, 2020 /PRNewswire/ --
United continues to aggressively manage the impact of the coronavirus (COVID-19) outbreak on our employees, our customers and our business. Due to government mandates or restrictions in place prohibiting travel, the airline is reducing its international schedule by 95% for April. The revised international schedule will be viewable on united.com on Sunday, March 22:
Atlantic
- United is drawing down its remaining trans-Atlantic operation. The final westbound departures will take place on March 25, with the exception of its Cape Town-New York/Newark service which will operate as previously scheduled with the last flight departing Cape Town on March 28.
- United will reduce its remaining trans-Pacific operation starting March 22, with final eastbound departures on March 25, with the exception of service between San Francisco and Tahiti and San Francisco and Sydney which will have final returns to San Francisco on March 28.
- United will maintain some Guam flights as well as a portion of its Island Hopper service.
- United will reduce its Mexico operation over the next five days. After March 24, it will only maintain a small number of daytime flights to certain destinations in Mexico.
- United will draw down its remaining Central and South America operations. The last southbound departures will take place March 24.
- United will temporarily suspend all flying to Canada effective April 1.
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United is basically getting out of the long-haul international business for a while.
UAL leadership united with several of the unions, but not ALPA, to exhort the rank and file to write and call Congress to expedite a bailout.
_____________________________________
https://www.prnewswire.com/news-rele...301027669.html
UAL leadership united with several of the unions, but not ALPA, to exhort the rank and file to write and call Congress to expedite a bailout.
_____________________________________
CHICAGO, March 20, 2020 /PRNewswire/ -- Oscar Munoz, Chief Executive Officer, J. Scott Kirby, President, and labor leaders today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:
To our United family:
We hope you and your loved ones are well.
In these difficult and uncertain times, we want to continue to keep you updated about all the ways we are aggressively managing the impact of the coronavirus (COVID-19) on our company.
Since you last heard from Oscar and Scott on Sunday, companies around the world, especially in the travel industry, have announced painful steps they've been forced to take to deal with this crisis. Marriott shuttered a number of properties around the world, furloughing tens of thousands of workers. MGM Resorts also closed facilities and will begin furloughs next week. Scandinavian Airlines announced temporary layoffs for 90% of its staff.
In Sunday's message, Oscar and Scott were very direct about just how dire this situation has become and what the company is doing to minimize the impact on you, your families and your paycheck.
Importantly, today's message to all of you is co-signed by many of our labor union partners – and includes a specific request for actions you can take to help.
In recent years, and together with our labor leaders, United has made significant investments in our people and created tens of thousands of high-quality jobs. And we are together now, doing everything possible to protect those jobs.
Earlier this week, we jointly signed a letter to leaders in the federal government calling for bipartisan action by the Administration and the United States Congress to support you, the men and women of United Airlines. Oscar and our partners in organized labor have been front-and-center in Washington D.C. for the past month, leading the charge to educate our representatives about the severe impact COVID-19 has had on our business and all of you.
While many in Washington, D.C. now realize the gravity of this situation, time is running out. The airline has made a number of drastic cuts over the last several weeks to reduce our costs: including slashing capital spending, freezing hiring, cutting payments to contractors and vendors, eliminating all discretionary spending and even cutting our corporate officers' salary by 50% while reducing Oscar and Scott's salary to zero.
However, as travel demand continues to plummet, even more cost-cutting measures will be required soon to keep our company afloat. To be specific, if Congress doesn't act on sufficient government support by the end of March, our company will begin to take the necessary steps to reduce our payroll in line with the 60% schedule reduction we announced for April. May's schedule is likely to be cut even further.
To that end, it's time for our representatives to hear from all of you.
Your voice matters - whether you work on the ramp, greet customers in the lobby, take calls in our contact centers, prepare food for passengers, service our planes or fly on our aircraft - and our representatives in government need to understand what's at stake if they do not act.
Please consider sending a letter or email to your representatives in Washington, D.C. urging them to take quick, bipartisan action to protect airline jobs.
There's one other important way for you to pitch in and help. Thousands of United employees have applied for a company offered leave of absence - which is an important way to help the company reduce costs. As we continue to reduce our schedule, we will continue to offer additional COLA opportunities so if you have not already applied, please consider doing so.
None of us caused COVID-19. But we continue to be among the most severely affected by the economic impact of this crisis, due to the outbreak's breathtaking effect on travel demand.
The hard work you do every day matters. And the role you play in the U.S. economy matters. It's time for the people of United Airlines to put a face on what will happen if the federal government does not act.
Thank you for all you are doing for our customers and each other during this extraordinary time.
In unity,
Oscar and Scott
Captain David Bourne
Director Airline Division
International Brotherhood of Teamsters
Ken Diaz
MEC President, United Airlines Master Executive Council
Association of Flight Attendants - CWA
Sito Pantoja
General Vice President
International Association of Machinists and Aerospace Workers
Craig Symons
President
Professional Airline Flight Control Association
To our United family:
We hope you and your loved ones are well.
In these difficult and uncertain times, we want to continue to keep you updated about all the ways we are aggressively managing the impact of the coronavirus (COVID-19) on our company.
Since you last heard from Oscar and Scott on Sunday, companies around the world, especially in the travel industry, have announced painful steps they've been forced to take to deal with this crisis. Marriott shuttered a number of properties around the world, furloughing tens of thousands of workers. MGM Resorts also closed facilities and will begin furloughs next week. Scandinavian Airlines announced temporary layoffs for 90% of its staff.
In Sunday's message, Oscar and Scott were very direct about just how dire this situation has become and what the company is doing to minimize the impact on you, your families and your paycheck.
Importantly, today's message to all of you is co-signed by many of our labor union partners – and includes a specific request for actions you can take to help.
In recent years, and together with our labor leaders, United has made significant investments in our people and created tens of thousands of high-quality jobs. And we are together now, doing everything possible to protect those jobs.
Earlier this week, we jointly signed a letter to leaders in the federal government calling for bipartisan action by the Administration and the United States Congress to support you, the men and women of United Airlines. Oscar and our partners in organized labor have been front-and-center in Washington D.C. for the past month, leading the charge to educate our representatives about the severe impact COVID-19 has had on our business and all of you.
While many in Washington, D.C. now realize the gravity of this situation, time is running out. The airline has made a number of drastic cuts over the last several weeks to reduce our costs: including slashing capital spending, freezing hiring, cutting payments to contractors and vendors, eliminating all discretionary spending and even cutting our corporate officers' salary by 50% while reducing Oscar and Scott's salary to zero.
However, as travel demand continues to plummet, even more cost-cutting measures will be required soon to keep our company afloat. To be specific, if Congress doesn't act on sufficient government support by the end of March, our company will begin to take the necessary steps to reduce our payroll in line with the 60% schedule reduction we announced for April. May's schedule is likely to be cut even further.
To that end, it's time for our representatives to hear from all of you.
Your voice matters - whether you work on the ramp, greet customers in the lobby, take calls in our contact centers, prepare food for passengers, service our planes or fly on our aircraft - and our representatives in government need to understand what's at stake if they do not act.
Please consider sending a letter or email to your representatives in Washington, D.C. urging them to take quick, bipartisan action to protect airline jobs.
There's one other important way for you to pitch in and help. Thousands of United employees have applied for a company offered leave of absence - which is an important way to help the company reduce costs. As we continue to reduce our schedule, we will continue to offer additional COLA opportunities so if you have not already applied, please consider doing so.
None of us caused COVID-19. But we continue to be among the most severely affected by the economic impact of this crisis, due to the outbreak's breathtaking effect on travel demand.
The hard work you do every day matters. And the role you play in the U.S. economy matters. It's time for the people of United Airlines to put a face on what will happen if the federal government does not act.
Thank you for all you are doing for our customers and each other during this extraordinary time.
In unity,
Oscar and Scott
Captain David Bourne
Director Airline Division
International Brotherhood of Teamsters
Ken Diaz
MEC President, United Airlines Master Executive Council
Association of Flight Attendants - CWA
Sito Pantoja
General Vice President
International Association of Machinists and Aerospace Workers
Craig Symons
President
Professional Airline Flight Control Association
