United Warns Airline Jobs Restored By COVID-19 Stimulus Likely 'Temporary'
United Airlines Holdings Inc (NASDAQ: UAL) Chief Executive Officer Scott Kirby and President Brett Hart in a statement to employees on Monday cautioned against optimism surrounding airline jobs getting restored by the U.S. COVID-19 economic stimulus.
What Happened: United and American Airlines Group Inc (NASDAQ: AAL) are expected to restore about 32,000 workers, who were furloughed earlier in October, as Congress approved a 0 billion coronavirus relief package on Monday night, including $16 billion for the airlines.
An earlier federal support of $15 billion expired at the beginning of October.
"This is certainly good news for our economy, our industry, and our airline - but it's especially good news for those who have been without a paycheck, and we can't wait to welcome them back," the United executives said on the bill, which now heads to outgoing President Donald Trump's desk for approval.
Kirby and Hart further noted that the management doesn’t estimate many changes to customer demand until the end of the first quarter of next year.
The United executives said they expect the recall will be temporary. "The truth is, we just don't see anything in the data that shows a huge difference in bookings over the next few months," they said.
Price Action: After a 1.53% drop during trading hours, UAL dipped by an additional 0.51% in the extended trading hours on Monday.
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