United Airlines warns it may furlough 36,000 staff as Covid-19 hits demand

United Airlines is warning 36,000 employees nearly half its U.S. staff they could be furloughed in October, the clearest signal yet of how deeply the virus pandemic is hurting the airline industry.

The outlook for a recovery in the airline industry has dimmed in just the past two weeks, as infection rates rise in much of the U.S. and some states impose new quarantine requirements on travelers.

Airlines say they must shrink to match falling travel demand. American Airlines executives have said they could have 20,000 more employees than the airline will need this fall.

United told employees Wednesday that not everyone who