Hawaiian Airlines (HA, Honolulu) is to put more than 2,000 of its workers on furlough from October 1, 2020 to save costs and preserve liquidity in response to the adverse affects on its business of the COVID-19 pandemic.

In a letter to employees on August 31, 2020, president and Chief Executive Officer, Peter Ingram, confirmed 2,041 of the airline’s 6,162 employees had been issued with furlough notices, affecting 816 flight attendants and 173 pilots; as well as 1,034 International Association of Machinist and Aerospace (IAM) workers and 18 Transport Workers Union (TWU) staff. Ingram confirmed furloughs had been issued to contract and non-contract staff; and that numbers could change as negotiations were on-going around voluntary early retirements and extended leaves.

He warned that further delays to a pre-travel testing programme and the reopening of travel could result in additional furloughs in the months ahead. “These reductions to our teams are painful and stressful for all of us, but necessary to ensure our business survives and is poised to respond to opportunities when we are able to resume a more normal flight schedule,” he said. Ingram added the airline’s leadership continued to work with the state, the public health system and the visitor industry to safely reopen travel.

An SEC filing dated August 31, 2020 said non-contract positions at Hawaiian Airlines would be reduced by 14%. It confirmed the airline had issued notices in line with labour regulations to trade unions involved; and was offering voluntary severance packages, including early retirement options, to eligible employees. In addition, officers had reduced their base salaries by 10% to 50% until at least September 30, 2020; while directors had also temporarily reduced their compensation, it said.

Addressing the issue of US government support to employees, Ingram said: “We are monitoring the progress of an extension of the Payroll Support Programme (PSP) when Congress reconvenes after Labour Day. We would welcome a six-month extension of the PSP on terms identical to those included in the CARES Act (Coronavirus Aid, Relief, and Economic Security), as has been proposed with bipartisan support in Washington. Keeping our teams intact through March of next year would provide more time for demand to recover and hopefully reduce the scale of workforce downsizing. We will adjust our plans as legislative developments unfold. It is, however, critically important that we continue the preparations for furloughs while we wait to see what emerges from Congress,” he said.