Airlines Could Get Another $25 Billion Bailout
The airline industry has already received billion during the pandemic. The bill passed in April provided $25 billion in payroll support and another $25 billion in loans for passenger airlines. It also gave $10 billion in grants and loans to cargo airlines and aviation contractors.
Now more money could be coming their way as travel is still far from normal and airlines are preparing for the prolonged effects of the pandemic. The largest four U.S. carriers have lost more than $10 billion combined.
House Speaker Nancy Pelosi signaled openness to a standalone coronavirus relief bill for the pandemic-stricken airline industry on Wednesday morning during a phone call with Treasury Secretary Steven Mnuchin. The information comes from the following tweet earlier today by the Speaker’s spokesperson:
Speaker Pelosi & Secretary Mnuchin spoke by phone at 9:33 a.m. The Secretary inquired about a standalone airlines bill. The Speaker reminded him that Republicans blocked that bill on Friday & asked him to review the DeFazio bill so that they could have an informed conversation.
— Drew Hammill (@Drew_Hammill) October 7, 2020
Shares in major U.S. airlines jumped at the opening bell. The president is also signaling a willingness to help domestic carriers survive the travel slowdown.
Airline employees started feeling the effects of the coronavirus pandemic this month. Carriers began cutting 35,000 jobs following the expiration of a $25 billion bailout fund that was created earlier this year as part of the CARES Act. Airlines were prohibited from cutting jobs or reducing workers’ pay through Sept. 30.
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