Airlines facing thousands of customer complaints amid coronavirus
FOX Business’ Hillary Vaughn says customers have filed over 25,000 complaints with the Department of Transportation in the past two months regarding airlines not providing cash refunds for canceled flights during the coronavirus pandemic.
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United Airlines announced that it needs only 3,000 of its 25,000 flight attendants in June as the coronavirus outbreak continues to crush demand for air travel, according to Reuters.
The airline giant warned of job cuts in the fall if demand does not pick up.
The CARES Act has allocated $5 billion in federal loans and grants to United, which the airline will use to pay workers until Sept. 30. As a condition of the aid, the airline may not lay employees off or reduce their pay until that date.
|UAL||UNITED AIRLINES HLDG.||19.92||-0.38||-1.87%|
While air travel is down around 90 percent, the Chicago-based airline is among the fleet of other major carriers that are scrambling to minimize a collective $10 billion monthly cash burn.
SOUTHWEST CEO: RADICAL RESTRUCTURING COMING IF DEMAND DOESN'T IMPROVE BY SEPT. 30
Southwest CEO Gary Kelly told FOX Business Thursday he will have to "radically restructure" the airline if travel demand does not improve dramatically by the fall.
|LUV||SOUTHWEST AIRLINES CO.||23.87||-0.91||-3.67%|
|AAL||AMERICAN AIRLINES GROUP INC.||9.04||-0.11||-1.20%|
|DAL||DELTA AIR LINES INC.||19.19||-0.19||-0.98%|
"We've got $14 billion in cash, you can do the quick math in your head," Kelly told FOX Business' "Mornings With Maria." "Things have to improve here quickly or we run out of money, and if they don't improve after Sept. 30, we would have to radically restructure not just Southwest Airlines but the whole industry."
GOVERNMENT WARNS AIRLINES ON REFUNDS, ALLOWS 5% OF FLIGHTS TO HALT
Airlines have been forced to cancel so many flights that the need for onboard staff has plunged.