United says buyout and workshare deals have cut the number of potential staff furloughs from Oct. 1 below 12,000, assuming no federal-aid package emerges.
Some 7,000 have taken early retirement so far, and a new pact agreed upon in a union vote removes the threat of furlough this year from 2,800 pilots, as well as 3,900 more in 2021. The pact would be delayed if federal aid is extended.
Container shipping companies are enjoying a fast bounce-back in demand now that lockdowns have been lifted. Jefferies notes that the fourth quarter demand outlook is favorable, supported by record-low U.S. retail inventories. Jefferies also notes that shipping companies have successfully managed their capacity this year, which led to record-high freight rates.
