LAS VEGAS (KLAS) — Allegiant Air announced it will cut 87 employees and 220 positions in a memo to staff today. President John Redmond said the decision was made “in an effort to restructure and streamline for the future.”
Redmond state that while more people are flying, the flight booking momentum has slowed down to an uptick in COVID-19 cases. He also noted that there may be an increase in July travel, but that will be followed by the usual “fall slow down.”
The internal memo reads as follows:
I want to thank you all for your continued support as we work our way through the coronavirus pandemic, and for recognizing both the seriousness of its impact, and the many unknowns ahead. Maury and I remain committed to be as transparent as possible with you about what the loss of revenue in short and longer-term means for our company, and to taking whatever steps are necessary to ensure we come through this unprecedented crisis in the best position possible.
As you know, difficult choices have been made in order to cut costs and preserve liquidity. The way our entire team has stepped up to support those efforts has been remarkable, and we are incredibly grateful.
This week, in an effort to restructure and streamline for the future, we made the difficult decision to eliminate 87 staff and roughly 220 total positions, primarily from administrative areas of the company. We understand it is difficult to see colleagues and friends leave the company regardless of the circumstances. But be assured we were deliberate in choosing timing that will give people as much notice as possible to seek other opportunities. These positions will be fully paid through September 30, with medical benefits paid through the end of the year, plus additional severance pay and full restoration of any pay concessions made since the beginning of the pandemic. We thank our teammates for their dedicated service and the critical role they have played in getting us to this point.
The picture has changed significantly from where we were in April, when demand for air travel plummeted as communities across the country shut down. Today, more people are flying, but recent increases in COVID-19 cases have chilled our momentum in bookings. And so the roller coaster will continue – no one can know for how long. While July will show increased traffic compared to previous months, it is followed by our traditional fall slow down. Unlike pre-pandemic, we are unable to forecast what the outcome will be for fall and into 2021.
With that said, our unique network and focus on leisure travel gives us significant advantages in the industry, and we have many reasons to look ahead with great optimism.
Finally, I want to make clear that there are no planned layoffs moving forward.
Again, I cannot stress enough how much we appreciate the thousands of extra hours, numerous personal sacrifices and continued dedication of this team through this difficult time. You are the best and brightest in the industry, and your work every day makes a difference for our customers and the communities we serve. With your strength and focus we will emerge even stronger, with clear skies and plenty of lift ahead.John Redmond, Allegiant Airlines President
Travel to Las Vegas picked up in early June when the Las Vegas Strip reopened.
Since then, Allegiant has taken precautions against the coronavirus, requiring passengers to wear face coverings during every phase of flight.
Several major airlines are grappling with layoffs or the potential for future cuts amid the COVID-19 economic crisis, including American Airlines, Delta Airlines and United Airlines.