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Airlines pushing for more federal stimulus money
With less than two months before payroll protection funding expires, airlines and unions want billions more in federal aid.
The CARES Act allotted $32 billion for the airline industry to protect jobs on the condition airlines do not enforce pay cuts or layoffs until at least 30 September.
However a slow travel recovery has floundered as Covid-19 cases continue to surge in many states.
American Airlines said CEO Doug Parker has discussed an extension with White House officials.
Southwest Airlines CEO Gary Kelly has done the same.
"Without customers and places and events for them to fly to, we’ll never punch our way out of this crisis," Kelly said.
Southwest and Delta Air Lines have said they will likely avoid compulsory layoffs as they have sufficient takers for extended leave and voluntary separation packages but some other carriers are looking at thousands of job losses to stay afloat.
Airline ticket sales last week were down 79% compared to 2019, according to settlement data from Airlines Reporting Corp.
A majority of House members support a bailout extension for airlines.
Without it ‘hundreds of thousands of airline workers will be fired or furloughed,’ they said.
by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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