Three major US airline CEOs will testify before the Senate on Wednesday to discuss several issues. The pressing topics set to come up are widespread flight cancelations from several carriers in recent months and payroll grants during the pandemic.

Called upon

The Senate Committee on Commerce, Science, and Transportation has called aviation industry leaders before a committee to testify later today. In a panel titled "Oversight of the US Airline Industry," airline executives and other groups can expect to parry questions from lawmakers on a variety of subjects. The hearing will begin at 14:30 E.T. today.

In attendance are United Airlines CEO Scott Kirby, Southwest's Gary Kelly, and American's Doug Parker. They will be joined by Delta Executive VP John Laughter and International President of Flight Attendants-CWA Sara Nelson to represent the major stakeholders.

US Airline CEOS
US airline CEOs have been in the political spotlight since last year due to the impact of COVID-19 on the industry. Photo: Getty Images

The timing of the hearing comes at a time when airlines are bracing for another potential downturn. With the Omicron variant fast spreading in the US, there is a serious risk of another wave of cases, sharply hurting travel demand. However, lawmakers have several other pressing queries for the industry giants.

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Important issues

The focus of the hearing will be on Payroll Support Program (PSP), which ended in September, and its impact on airline operations. However, Senators are also expected to quiz CEOs on the tens of thousands of flights canceled in the last quarter due to staffing shortages.

Southwest was the first to experience widespread issues, with over 2,000 flights canceled in three days in October. However, American Airlines has faced similar problems, with Halloween weekend seeing thousands of services canceled or delayed. Given the billions in support under PSP, lawmakers question what has left carriers so unprepared.

Southwest racked up a $75 million bill for its cancelations in October, which left thousands stranded. Photo: Vincenzo Pace | Simple Flying

In a statement, seen in Fox Business, committee chair Senator Maria Cantwell previously wrote to carriers saying,

"I am deeply concerned by recent reports highlighting… workforce shortages that have caused flight cancellations and generated delays for passengers...These shortages come in the wake of unprecedented federal funding that Congress appropriated, at the airlines’ request, to support the airline industry during the COVID-19 pandemic."

Response

As airlines parry questions from Senators, they are expected to note the crucial impact of the PSP. According to Reuters, Doug Parker plans to speak about how the federal dollars saved the airline industry, talking about the PSP funding was much better than a loan. He said a loan would have terrible consequences, saying,

"[Airlines] would have survived by shutting down flying in April 2020, furloughing almost all of our teams, and waiting for demand to return to levels strong enough to justify restoring flying [in case of a loan]. As it turns out, that would have been some time in 2021."

For now, Congress will be interested to know how airlines plan to tackle staffing issues in the near future. Indeed, this will be crucial to ensure airlines can access more support in the future if needed.