Airlines Reach Deal For Billions In Stimulus Grants

The Hill reports:

Major U.S. airlines have reached an agreement with the Treasury Department to accept billions of dollars in coronavirus stimulus funds, the department announced Tuesday. Treasury Secretary Steven Mnuchin said in a statement that he and the department “welcome the news” that 10 airlines have agreed to participate in the program. The airlines applied for parts of $25 billion in payroll grants.

The initiative was created through the third coronavirus stimulus bill and requires the airlines to agree not to furlough or cut the pay rates of employees through Sept. 30. Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will all take part in the program, Mnuchin said.

CNBC reports:

The virus and harsh measures to stop it from spreading, such as stay-at-home orders, have driven air travel demand to the lowest levels in decades. Carriers have grounded hundreds of jetliners and are asking thousands of employees to take voluntary unpaid leave, in a race to cut costs as cancellations outpaced bookings.

American, Delta, United, Southwest, Spirit, JetBlue, Alaska and others applied for portions of $25 billion in payroll grants — airlines’ largest ever government aid package — that require airlines not to furlough or cut the pay rates of employees through Sept. 30.

U.S. airlines employ some 750,000 people. The grants were part of the more than $2 trillion coronavirus relief package, the CARES Act, which was signed into law last month.