Treasury Secretary Steven Mnuchin said the
department would work with the airlines to
finalize deals “and disburse funds as quickly
as possible.”
President Donald Trump — perhaps mindful
of criticism that the government was bailing
out a previously profitable industry — said
the deals will support airline workers and
protect taxpayers.
“Our airlines are now in good shape, and they
will get over a very tough period of time that
was not caused by them,” Trump said.
The payroll aid is roughly based on each airline’s
spending on wages and benefits from April
through September 2019,
American Airlines said Treasury approved $5.8
billion for the airline — a $4.1 billion grant and a
$1.7 billion low-interest loan. CEO Doug Parker
called it “fantastic news,” and “we now believe we
have the financial resources necessary to help us
withstand this crisis.”
Delta Air Lines said it reached agreement
with Treasury for $5.4 billion — a $3.8 billion
grant and a $1.6 billion loan. CEO Ed Bastian
said that the aid, along with cutting 80% of its
schedule and having 35,000 employees agree to
voluntary leave, will let Delta operate a minimal
schedule for people who must travel.
Analysts expected United Airlines to also be
eligible for more than $5 billion. United said it
expected to complete a final deal with Treasury
“in the next few days,” but gave no figures.
Southwest Airlines said it expects to get $3.2
billion, including more than $2.3 billion in cash
and the balance in an unsecured loan.