Shares of United Airlines (NASDAQ: UAL) gained around 2% after the carrier announced the biggest pilot job cut in history as it moves forward with plans to sack 2,850 pilot jobs in October and November. 

On Thursday, United Airlines announced it will cut 2,850 pilot jobs this year, 21% of its total pilot staff, making it the biggest pilot furlough in history. The airline has requested an additional $25 billion from the U.S. government to help cover the staff wages through March, after experiencing a devastating blow from the coronavirus crisis. 

The first tranche which prevents any job furloughs until October 1 is scheduled to expire in September, however, the talks in Washington are dragging out as Congress still didn’t manage to come to an agreement over the new coronavirus stimulus program. 

The airline plans to execute the job cuts in the period between October 1 and November 30, according to the memo shared with its staff and media. The number of planned job furloughs is higher compared to the 1,900 announced by Delta Airlines and 1,600 by American Airlines.  

The Chicago-based airline said the decision to cut that many jobs was based on the current travel demand for the rest of this year as well as its expected flying schedule  which“ continues to be fluid with the resurgence of COVID-19 in regions across the U.S.”

While 36,000 jobs at United are currently at stake, the company still didn’t announce the ultimate furlough numbers for other working parties.

United Airlines stock price moved higher on Friday on news of a major pilot job cut. Investors are seeing this move as another measure to slash costs after the pandemic facilitated a plunge in the demand for international travel. 

The stock price is now testing the upper resistance trend line that connects the lower highs. The buyers will want to test the 2-month high sitting below the $40 mark, before eventually pushing the price action north of $50.

United Airlines shared a memo with its employees and the media, announcing it will cut 2,850 pilot jobs this year, the largest in its history. Shares gained 2% on this news as the management continues to slash costs across the business. 

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