U.S. Airlines are close to receiving a four-month extension of government assistance of about $17 billion to fund payroll costs, according to Reuters. The new assistance program mirrors the earlier $25 billion approved by Congress in March that required airlines to repay 30% of the payroll grants over time and offer the government warrant.
- The $17 billion airline package is part of the $900 billion relief package under negotiation, with Congress expected to reach a deal as early as Thursday this week.
- The $900 billion relief package also includes $15 billion for U.S. transit systems, $4 billion for airports, $1 billion for passenger railroad Amtrak, and $8 billion for private bus companies and other services.
- The aid package will allow airlines to bring back more than 32,000 workers furloughed in October who could be paid retroactively from December 1.
- Airlines would also resume flying some routes they stopped operating after the aid package expired.
- U.S. airlines are losing about $180 million daily, with passenger volumes down 65% to 70% and cancellations rising
American Airline stocks are currently gaining. AAL: NASDAQ is up 0.95% on premarket, UAL: NASDAQ is up 0.15% on premarket, DAL: NYSE is up 0.15% on premarket.