Substantial layoffs at The Philadelphia International Airport could happen if a $23 million deficit in  the city’s Division of Aviation can’t be fixed, writes writes  Laura Smythe for Philadelphia Business Journal.

The Aviation Division runs the Philadelphia Airport and the Northeast Airport.

Pandemic-related travel restrictions and less people flying created the deficit.

The airport made it through fiscal year 2020, which ended June 30, thanks to federal CARES Act COVID-19 relief received in April.

PHL received $116 million. The Northeast Airport received $157,000. That provided 100 days of cash on hand.

But with COVID-19 cases still not under control nationwide, travel restrictions remain.

It’s believed it will take the aviation industry longer than expected to return to 2019 levels.

In addition to layoffs, PHL could end up tapping into limited cash reserves, suspend capital investments, and up airline rents and fees,.

PHLs carriers are also laying off.  American Airlines, PHL’s dominant carrier, plans to  furlough more than 1,900 at Philadelphia International Airport on or near Oct. 1, with an additional 68 employees furloughed around Nov. 1.

United Airlines also plans to furlough 100 employees at the airport beginning Oct. 1

Read more about the airport’s financial trouble here.

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