A United Airlines plane takes off above American Airlines planes on the tarmac at Los Angeles International Airport (LAX) on October 1, 2020.
Mario Tama | Getty Images
Airline shares surged Friday after House Speaker Nancy Pelosi vowed additional payroll support for carriers, asking them to hold off on tens of thousands of job cuts.
Pelosi’s comments come a day after airlines started furloughing more than 33,000 employees after the terms of a $25 billion federal payroll support package passed in March expired. That aid, meant to help airlines cope with a plunge in bookings because of the coronavirus pandemic, prohibited job cuts until Oct. 1.
Airlines have pleaded with lawmakers and the White House in recent weeks for $25 billion more to preserve jobs until March after a significant rebound in travel failed to materialize over the summer.
Shares of American Airlines, which Thursday started furloughing 19,000 workers, more than any U.S. airline, were up 5% after Pelosi’s statement. United Airlines shares were up close to 3%. The Chicago based carrier announced more than 13,000 furloughs this week.
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