US Aviation Industry Requests More Government Aid Ahead of Mass Layoffs in October

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The U.S. airline industry, which has announced mass layoffs in October, has requested additional financial aid from the political sphere ahead of the November 3 presidential election. They made it clear that if this is not granted, they will hold the election accountable at the ballot box. However, it remains uncertain whether additional support will be provided, given that large-scale government funding has already been injected into the airline industry.

On the 2nd (local time), the Associated Press reported that the airline industry requested additional government aid ahead of the November 3 election.

Sarah Nelson, president of the Association of Flight Attendants, warned, "Ultimately, the White House will be held responsible for the layoffs, and the 23 Republican senators seeking re-election will be as well."

Earlier in March, the U.S. government provided $32 billion (approximately 38 trillion won) in payroll support over six months to the airline industry, which was hit hard by the COVID-19 pandemic, on the condition that no layoffs would occur until this fall.

The expiration date for this support is October 1, and in line with this, U.S. airlines have announced mass layoffs.

The exact scale of the reductions in the U.S. airline industry has not been disclosed, but United Airlines announced it plans to send layoff notices to about 36,000 employees this week. American Airlines is expected to notify about 25,000 employees, and Delta Air Lines reportedly sent layoff notices to about 2,500 pilots alone.

Unions from 13 airlines are lobbying Congress to extend the payroll support deadline by six months.

However, it remains uncertain whether the White House, which holds the final decision-making authority, will approve this.

Gary Kelly, CEO of Southwest Airlines, expressed support for the payroll aid but noted doubts about whether it will gain approval in Washington politics.

CEO Kelly said, "Last spring, there was broad support from Congress, the administration, and even the president, but this time it is not the case."

More than 220 members of the House of Representatives are reportedly in favor of this support plan.

The Trump administration has not commented on a second bailout plan for the airline industry.

This content was produced with the assistance of AI translation services.