United Airlines offers pilots unpaid leave to cut overstaffing amid Boeing delays

Reuters

Published Apr 01, 2024 10:56AM ET

Updated Apr 01, 2024 01:11PM ET

By Rajesh Kumar Singh

CHICAGO (Reuters) -United Airlines has offered voluntary unpaid leave to its pilots next month as delays in aircraft deliveries from Boeing (NYSE:BA) has left it overstaffed, according to company and union memos seen by Reuters.

A United spokesperson confirmed that the delivery delays have reduced its aircraft utilization this year, prompting the company to resort to "voluntary programs" to address excess staffing. The spokesperson declined to share more details.

However, in a staff memo, United told pilots they can take unpaid time-off for the whole month of May or on chosen dates. Pilots can also opt for a blank schedule where they will be allowed to pick and trade trips.

While the measures are only for the month of May, United's pilot union told its members additional programs are expected during the summer and "potentially into the fall."

"While the delivery issues surround our 787 and 737 fleets, the impact will affect other fleets as well," the union said in a memo on Friday. Program selection and duration is not known at this time."

The latest move comes weeks after United announced a pause in pilot hiring in May and June.

It is the latest example of how a safety crisis at the U.S. planemaker is rippling through the airline industry. Boeing's problems have already forced airlines to cut expectations for aircraft deliveries, complicating efforts to meet record travel demand.

United is not alone. Rival Southwest Airlines (NYSE:LUV), another Boeing customer, has also stopped hiring pilots and flight attendants.

Boeing has been under heavy regulatory scrutiny following a harrowing Jan. 5 Alaska Airlines mid-flight panel blowout that led to probes into the company's safety and quality standards in its production process.

Last week, Boeing CEO Dave Calhoun announced he would leave by the end of the year, while the company's long-time head of commercial airplanes, Stan Deal, retired effectively immediately and the board chair Larry Kellner stepped down and was replaced as chair by director Steve Mollenkopf.