Unexpected money troubles forced a new-hire United Airlines flight attendant to quit her dream job just three months after completing training. It was a crushing defeat, but what she didn’t expect was for United to start hounding her for a “sketchy” and “manipulative” loan.
“I quit United last year after 3 months of flying due to [the] unforeseen financial stress of the role,” the unnamed woman said on the popular social media site Reddit. “Here I am trying to get back on my feet, still unemployed 6 months later, and I get an invoice in the mail from United saying I owe ~$1300.”
The invoice explained that the money was owed for the vague reason of ‘new-hire recovery.’ The ex-flight attendant was given just two weeks to pay the invoice or face the threat of collections going after her.
The woman wrote on Reddit: “Feels so slimy for a multibillion-dollar company to nickel and dime poor people like this.”
This is not, however, an isolated incident. In response to the woman’s post on Reddit, other ex-flight attendants at the Chicago-based carrier shared similar stories of receiving threatening letters from the same airline that was once their dream employer.
The Hidden Cost of Becoming a Flight Attendant
There’s no sugarcoating the fact that new-hire flight attendants can experience pretty significant money worries. Despite the glamorous nature of the role, the first few years of flying are not well-paid, and it’s common for new-hire crew to question whether they can survive long enough to start earning better pay.
The situation at United Airlines is even worse, though, as flight attendants haven’t received a pay rise since 2001, when the last union contract became amendable. Despite rising inflation and a cost of living crisis, flight attendant wages are stagnant.
Perhaps realizing that starting a new job that requires workers to complete six weeks of unpaid training and then potentially restart their lives in a new city is a costly exercise, United offers new-hire flight attendants the option to take out a loan.
A condition of that loan is that flight attendants don’t suddenly quit before United has got their money’s worth out of them.
“Sketchy” Loan Practice or Legitimate Cost Recovery?
Although United’s loan system is voluntary, there are some airlines where new hire flight attendants agree to pay back the company huge sums of money if they quit within six, eight, or sometimes even 12 months.
This is particularly common in the Middle East, where carriers like Emirates, Etihad and Qatar Airways pay to fly new-hire flight attendants to their home city from around the world, including recruitment events in the United States.
Recovery fees, however, don’t just cover the cost of flights and the fee accommodation afforded to many airline workers in the Persian Gulf but also the cost of training, uniforms, and even food that employees have been provided during their training course.
In the Middle East, ex-flight attendants will often flee the country to avoid paying big bills, but they risk being permanently banned from ever returning or being thrown into jail.
In contrast, other ex-flight attendants at United Airlines who have received a similar loan recovery letter from the carrier say they just ignored the demands and haven’t received any further threats.
Does this loan system feel ‘sketchy’ to you, or is this a legitimate business practice? Let me know your thoughts in the comments below.
This is a two edged sword. One might see the ex-flight attendant’s side and also see the airline’s side. Pilot training and flight attendant training is very expensive for the airline. Surely, those training costs are way more than a “desk job” with an airline. Both pilots and flight attendants know the salary when they apply or interviewed. They know what is expected of them. Some airlines will make the new hire sign a training bond. “Hey Ms. New Hire Pilot, Mr. New Hire Flight Attendant, we’re gonna spend a lot of money training you. We will (in most cases) pay you a stipend, pay for your housing and a per diem for food, etc. during your XXX weeks of training. In return, when you graduate, we’ll pay you the back salary from day one. However, we want some assurance that you will stay with us for XXX period of time so that we can recoup our expenses. Now, if the airline didn’t disclose this on “day one”, then shame on the airline. On the other hand, if this was disclosed and the new hire quit before the XXX period of time…then the airline is entitled to be reimbursed. Sadly, though, many airline new hires have very little work ethic. The flight is ready to board but a couple of flight attendants are missing. Scheduling is called. Scheduling calls the new hire, “Hey, where are you? They are ready to board.” “Well, I’m at Lake YYY because I had a chance to visit friends. I’m taking a sick day (or PTO).” Scheduling has to call a reserve, the flight is delayed, etc. New hire pilots rarely have that issue because their expenses to get to the interview process and the specter that failure to pass the airline flight training course will keep them from being hired by another airline puts a fire in their heart (or under their butt!) to stick with it! I’ve seen this many, many times over my 26 years of Part 121 training
Well said and I agree!!
AS a former flight attendant with Delta Airlines, I totally agree that many of today’s new hires do not have good work ethics. Yes, it was hard financially in the beginning. That is why many of us shared a place in a new city with several other flight attendants.
Why would anyone agree to a loan and think they did not have a responsibility to pay it back?
It is called personal responsibility.
Why is this person still unemployed after 6 months?
Several red flags here.
Dana, Well said!! MANY red flags here! I’m sure repayment was NOT in the fine print…… Lazy, Entitled and Wah Wah Poor Me Culture come to mind too.
Anytime two parties willingly agree to terms and sign a contract is of course a legitimate business practice. No one forced her to become a flight attendant, no one forced her to take money from United in the form of a loan, and no one forced her to quit before she met the requirement she agreed to. All three were choices she made and choices she needs to live with.
No raise since 2001 last contract amendable date?!?! I think there have been 3-4 additional contracts since then, huge pay raises since 2001, profit sharing since 2001, a merger. Fact check please. Today’s wages were NOT top of the scale in 2001. Last contract became amendable at end of 2020. 23.5 years vs 4.5 years is a pretty big difference. Don’t believe what you read!
Wonder if we retired employees can sue them for our retirement that they defaulted on? FYI the tax payers pay us through the government pension group one way or another instead of UAL.
“I quit United last year after 3 months of flying due to [the] unforeseen financial stress of the role,” the unnamed woman said on the popular social media site Reddit. “Here I am trying to get back on my feet, still unemployed 6 months later…” So she quit her job due to financial stress without having another job lined up and still doesn’t have any job 6 months later. Also, quiting a job after 3 months doesn’t look good on a resume. Having no job adds a lot more stress on one’s finances than having a job that doesn’t pay as much as one would like. In today’s market there are jobs that don’t pay well, but they pay more than nothing and can bridge until a better job can be found. Something doesn’t add up. I expect that United’s (and other airline’s) policies of seeking compensation for the training costs and perks that she enjoyed then walked away from for seemingly no good reason was explained to her before she left. This sounds like a person who will have a lifetime of “financial stress” due to bad decisions.
You hit ALL the nails on the head Peto!! I think United dodged a bullet on that FA! Anyone that can’t find a job now in 6 months is a total slacker………
Passengers and crew are better off without such flight attendants.
Why is so many people think it’s ok to take out a loan so they can get better pay, they cry it’s unfair they have to pay the loan back? It’s not a difficult concept, you agree to pay off a loan, then pay off the loan.
I’m a FA. I lived 5 to an apartment, took the bus, no car, made it work. Payback comes with seniority.
“This is deeply disappointing. and heartbreaking No one should have to pay a penalty just to walk away from a low-paying job. Stories like this highlight how broken some industry systems are and why fair wages and dignity at work matter more than ever.”