US Government Agree on $25bn Bailout Package for Airlines

Wednesday, 15 Apr 2020

US Government Agree on $25bn Bailout Package for Airlines

The US government agree on a $25bn bailout package for the struggling airline industry in the wake of COVID-19. Airlines are expected to lose $314bn in revenue this year according to The International Air Transport Association as a result of the global pandemic bringing the majority of air travel to a standstill.


The $25bn package is part of a larger $2.2tn economic relief package, passed in March, allowing airlines to continue paying staff salaries and benefits. The Treasury Department and US airlines have agreed the support would be structured as part grant, part loan. The Treasury will also receive warrants to buy stock in the companies.


The following airlines are expected benefit from the bailout package: Alaska Airlines, Allegiant Air, American Airlines, Delta, Frontier Airlines, Hawaiian Airlines, JetBlue, United, SkyWest and Southwest. Additional airlines are still discussing whether they will take part in the program.


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