Southwest backs off threat of furloughs after Covid relief package signed
With President Trump finally signing off the $900 billion Covid relief package, Southwest Airlines has lifted its threat of furloughs or pay cuts.
US airlines will receive $15 billion which goes toward securing jobs through the Payroll Support Program (PSP).
To receive the funds, airlines must keep all employees on the payroll.
The new package lasts through March 2021.
"The new law will provide payroll support for all Southwest employees through 31 March 2021. Given this, we currently do not anticipate the need to conduct any furloughs or pay cuts next year," CEO Gary Kelly said.
The airline had warned nearly 7,000 employees were facing the possibility of furloughs, as it couldn’t agree pay cuts with unions.
The airline has never had to impose mass layoffs in its 50-year history.
Other airlines including American Airlines and United Airlines furloughed tens of thousands of employees when the last Covid relief package expired in October.
They now intend to recall these workers.
Written by Ray Montgomery, US Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025