United Airlines UAL and a union have reached a deal to avoid the furloughs of 2,850 of the Chicago carrier's 13,000 pilots.
The labor agreement comes less than a month after United said it planned to furlough or lay off about 16,000 employees, including 2,850 pilots, starting Oct. 1, when its federal coronavirus relief loan runs out.
“Any potential mitigation must achieve our goals: stop planned furloughs, stop displacements, and include long-term permanent gains for any short-term, fully recoverable modifications,” Todd Insler, chairman of the United Airlines chapter of the Air Line Pilots Association, said in a note to union members that was reviewed by CNBC.
The union and United Airlines did not provide specifics of the agreements or the cost.
United Airlines shares at last check were off 3.6% to $35.93 after the airline earlier in the day reduced its third-quarter scheduled capacity.
The company now expects third-quarter passenger revenue to fall about 85% from the year-earlier period, United Air said in a Securities and Exchange Commission filing. That compares with its previous guidance of an 83% decline.
In the two weeks ended Sept. 7, United said, the carrier saw "moderate improvement in bookings for leisure travel” for domestic routes and some short-haul destinations in Latin America and the Caribbean.
But it doesn’t “expect the recovery from covid-19 to follow a linear path,” United said. “As such, the company’s actual flown capacity may differ materially from its currently scheduled capacity.”