Southwest Airlines Goes to Employees Seeking Concessions
Southwest Airlines (NYSE: LUV) has reportedly reached out to union leaders to discuss possible concessions once government bailout funds are exhausted.
Southwest and other airlines have been hard hit by the COVID-19 pandemic, which has caused travel demand to fall upwards of 95% year over year. The U.S. federal government has authorized $50 billion in bailout funds to try to get the industry through the downturn without layoffs, but company officials are increasingly skeptical that the package will be enough to avoid taking other actions.
Southwest is expected to receive $3.2 billion in direct support from the government and a $1 billion loan to help it make payroll. The funds are conditioned on the airlines doing no layoffs or furloughs through Sept. 30, among other requirements.
Source Fool.com
