Airline unions urge carriers to stop buying again when the relief moratorium ends this fall

The largest airlines in the United States are earn money again. Unions don’t want them to spend it on stock buybacks.

One condition of the $54 billion federal aid that airlines received to pay workers during the Covid pandemic barred carriers from buying back shares. That ban is in effect through September 30.

But in a public campaign and petition launched on Thursday, some of the largest airline labor unions – representing more than 170,000 pilots, flight attendants, customer service agents and other employees industry – is urging carriers to stabilize operations and invest in workers before spending money buying back their own stock.

Sara Nelson, international president of the Association of Flight Attendants, “We cannot allow executives to send a dime to Wall Street before they have resolved the operational issues and concluded negotiations. contracts to ensure salaries and benefits maintain and attract people to airline jobs,” said Sara Nelson, international president of the Association of Flight Attendants, which represents about 50,000 cabin crew members. in a statement announcing the anti-acquisition campaign on Thursday.

The campaign is also supported by the Association of Professional Flight Attendants, the Association of Airline Pilots, the International Association of Airline Workers and Mechanics, the International Brotherhood, the American Transport Workers Union and American Communications Workers.

The four largest US carriers – Delta, United, American and Southwest — spent about $40 billion buying back shares of their companies between 2015 and early 2020, according to S&P Global.

“Our highest financial priorities right now are restoring our balance sheet and investing in our employees and customers,” United said in a statement. The airline is in the process of renewing its fleet with nearly 300 aircraft to be delivered in the coming years.

Southwest declined to comment and American and Delta did not immediately respond.

Many workers are represented by unions that advocate for continuation of acquisitions that are negotiating contracts with their carriers. In addition to higher pay, unions are pushing airlines to have more predictable schedules after last-minute chaotic flights by airlines planned for both customers and employees. .

Flight delays and cancellations rose this year after airlines struggled with staff shortages that exacerbated routine problems like bad weather. “Every dollar spent on share buybacks is a dollar that can be used to reduce disruption by addressing the situation,” said Richard Honeycutt, Chairman of the CWA Passenger Services Aviation Board. lack of manpower, high turnover, overtime and low starting salary”.

Union push lawmakers for an early pandemic aid package in 2020, following initial opposition from Congress, some of which stemmed from pre-pandemic airline share buybacks. Sen. Richard Blumenthal, D-Conn., said at the time: “There is no bailout for the empty check industry.

Despite the soaring bookings, the surge in costs including fuel and labor has left U.S. carriers low on profits, and their stock prices are closely following the broader market.

Those challenges could make it difficult for airlines to resume buybacks or dividends, which are also barred through September 30, under the terms of the aid package.

“Given the economic uncertainty and possibly even activities that have not yet fully returned to pre-COVID levels, we do not expect any activity,” said Savanthi Syth, aviation analyst at Raymond James. will start paying dividends or repurchases this year.”

She estimates that the earliest time that airlines will resume operations is mid-2023, with Alaska Airlines and Southwest are the most likely candidates among the US carriers.

The NYSE Arca Airline Index, which mainly tracks carriers in North America, is down about 21% so far this year, more than double the S&P 500.