United Airlines reportedly reveals plans to lay off 13 officers

Major US airline United has reportedly revealed plans to lay off 13 of its 67 senior-executive officers.

The move is said to be part of its cost reduction measures to deal with the impact on travel demand due to the coronavirus (Covid-19) pandemic.

Earlier last month, the carrier reportedly revealed plans to cut 3,400 management and administrative positions.

According to the new announcement, eight of its executives will leave on 1 October while five openings will not be filled, reported CNBC.

The company is directing its employees to opt for voluntary separation as layoffs or cuts to pay rates cannot be implemented until 30 September as per the terms of $25bn in federal aid.

In a written statement, United is quoted by CNBC as saying: “While there are glimmers of good news in our July schedule — we expect to be down about 75% versus 90% right now — travel demand is still a very long way from where it was at the end of last year and the financial impact on our business remains severe.”

In its first-quarter financial results released in April this year, United Airlines (UAL) recorded a net loss of $1.7bn and an adjusted net loss of $639m.

The carrier also announced its plans to reduce its flights in May by 90% due to the Covid-19 pandemic the same month.

In addition to United, American Airlines reportedly planned to cut 5,000 management and support staff positions as the pandemic continues to affect business.

UK-based low-cost carrier easyJet also planned to reduce staff numbers by up to 30% due to the pandemic.