United Airlines Holdings Inc. (UAL) warned its workers it could furlough 36,000 of them and likely move to layoffs in August, The Wall Street Journal reported Wednesday. United as of December had about 96,000 employees, but thousands since have lost their jobs temporarily or otherwise as air travel continues to be hobbled by measures designed to curb the spread of the coronavirus. In a filing Tuesday, United said its management held a town hall-style meeting with employees and told them capacity for June was down about 88% year-over-year, and July capacity is expected to be down about 75%. August capacity was seen down around 65%, including schedule cuts announced last week due to less demand for destinations going through rises in COVID-19 cases, on new quarantine requirements, or other restrictions on travel, the company said. United "does not expect the recovery from COVID-19 to follow a linear path, as illustrated by recent booking and demand trends, and that consolidated capacity through the end of 2020 is expected to be generally consistent with August 2020," it said. Shares of United fell more than 2% in midday trading Wednesday and are down 64% this year, compared with losses around 3% and 9% for the S&P 500 index and the Dow Jones Industrial Average .
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 08, 2020 12:00 ET (16:00 GMT)
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