Airline Industry and Trump Administration Come to Terms of $25 Billion Bailout

American Airlines aircraft at Miami International Airport

Ten U.S. airlines and the Trump administration have reached an agreement in principle over the terms of a $25 billion industry bailout.

The ten – Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines – will receive funding from the new payroll support program that was part of the $2.2 trillion economic stimulus bill passed by Congress in March.

The aid will serve as a lifeline for the airline industry, which has seen 95% of its traffic erased by a plunge in demand amidst the coronavirus outbreak.

The Treasury Department said that “conversations continue” with other U.S. airlines concerning their potential participation in the payroll support program.

Under the terms of the program, the funds will be used to pay employees, who cannot be furloughed or have their pay cut through September 30, 2020.

“We welcome the news that a number of major airlines intend to participate in the Payroll Support Program,” said Treasury Secretary Seven Mnuchin in a statement, adding that the deal would “support American workers and help preserve the strategic importance of the airline industry.”

American Airlines, the world’s largest airline, will receive $5.8 billion under the program.

(Photo: Accura Media Group)