Coronavirus impact: United reduces U.S. flights and cuts workforce - San Francisco Chronicle

As the coronavirus pummels travel demand, United is reducing domestic and international flights and cutting back its workforce, according to an employee memo from President Scott Kirby and outgoing CEO Oscar Munoz on Wednesday. The airline is giving employees the option of taking a voluntary, unpaid leave of absence or a reduced schedule, postponing some merit salary increases, and freezing non-critical hiring until the end of June.

United, which has a hub at San Francisco International Airport, will reduce schedules across the U.S. and Canada by 10% in April, with similar plans for May. The airline is suspending service between four hubs and 10 cities through June. SFO flights that are impacted go to Louis Armstrong New Orleans International Airport, Northwest Arkansas Regional Airport, and Fort Lauderdale-Hollywood International Airport through June 4. Travelers from San Francisco will now have a layover to get to those destinations.

The changes also include reducing the number of flights at off-peak times and using smaller aircraft as well as temporarily cutting some routes with relatively few passengers. The airline will announce more specifics on Saturday.

United will also slash its international schedule by 20% in April and May. That figure includes reductions that have already been made, such as the end of flights to China and reduced routes to other Asian destinations. This will mean smaller aircraft in regions with lower demand and delayed start dates for some seasonal summer routes.

The airline already waived change fees for bookings made until the end of the month for any future date for domestic and international flights. This does not apply to previously booked trips scheduled to depart or arrive in March.

United said that due to the planned reduction and the resulting impact on its operations it made “the difficult decision” to implement measures that will affect its workforce.

Starting Wednesday, many U.S. employees have the option of applying for a voluntary, unpaid leave of absence or in some cases a reduced schedule. All new hiring has been suspended through at least June 30, except for roles critical to operations. The airline is postponing some new hiring training classes.

The company is also postponing 2019 merit salary increases for all management and administrative employees. Employees covered by collective bargaining agreements will receive their scheduled increases.

The airline said its schedule reductions were being implemented in a way “that minimizes the impact on our employees and our operation.”

“For example, we’re reducing the number of frequencies per week, finding routes with alternative travel options via other United hubs, and delaying start dates for seasonal travel to certain destinations — without closing any domestic stations,” the memo said.