United Airlines plans to involuntarily furlough more than 16,000 employees on October 1, according to reports in the US.
It means the staff will be on unpaid leave but can continue to receive healthcare benefits.
Government protections linked to the federal coronavirus bailout of the industry earlier this year will expire at the end of this month.
CNN said the number of furloughs is about 20% of the US carrier’s total workforce.
In a new memo to employees, United said the number is less than half of the airline’s July furlough forecast, in part thanks to 7,400 employees accepting early retirements or voluntary departures, and an unspecified number taking unpaid leave.
United’s memo calls furloughs a “heart-wrenching” last resort, said CNN.
The airline does not expect a return to normal until a vaccine for Covid-19 is widely available.
The Financial Times highlighted how passenger numbers remain a fraction of 2019 traffic.
It said that the US Transportation Security Administration reported 516,000 passengers passed through checkpoints on September 1, down 75% year-on-year.
American Airlines said last month that it would put 19,000 workers on involuntary unpaid furlough there is not an extension of aid to the industry.
Unions and airlines are lobbying the US Congress for billions more dollars in financial support.