Airline Chiefs Answer for Flight Disruptions, Refund Policies During Senate Hearing

Airline executives faced the Senate on Wednesday (Dec. 15) on issues surrounding travel recovery and the effect of aid, The Wall Street Journal (WSJ) writes. 

Lawmakers have been looking at the $54 billion carriers got in federal grants, which made it so they couldn’t furlough workers. 

That said, some carriers were still on hard times after letting thousands of workers retire early in the pandemic with all of the unknowns of that time. 

The package was a good one, Senators from both parties said — though Sen. Roger Wicker, a Republican from Mississippi, said some airlines had been “overly ambitious,” which caused delays and cancellations. 

The hearing veered into other issues, including questions about airline fees and refund policies, employee vaccination rules, inflation, sustainability and a burgeoning pilot shortage that might affect air service in some parts of the country. 

American Airlines CEO Doug Parker told the Senate committee that the aid had “saved” the industry.  

Parker said in written remarks that American wanted to be on top of the issues and restore air service after he received the aid. 

But the executives said they had seen challenges hiring and retaining employees. The labor market has become more competitive, and carriers have seen more absenteeism. This has also compounded with disruptions on planes, and made it harder to deal with issues like severe weather. 

Southwest Airlines CEO Gary Kelly said it was a matter of “getting adjusted to this pandemic reality we’re all dealing with.” 

PYMNTS reported previously on the meeting before it happened, including that American’s plans were to hire 18,000 workers in 2022, while Southwest planned to hire 8,000. 

Read more: Senate Committee Hearing Puts Airline Chiefs in Hot Seat Over Cancellations, Staffing Shortages

The airlines have seen improvements since October in terms of their delays and cancellations. Part of that comes from higher pay and changed schedules, according to the report. But as the new COVID-19 variant Omicron arrives, governments have begun restricting travel from some countries.