Exclusive: Republican senators back extending US$25 billion payroll aid for US airlines; shares jump

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Exclusive: Republican senators back extending US$25 billion payroll aid for US airlines; shares jump
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A group of 16 Senate Republicans on Wednesday backed extending a US$25 billion payroll assistance program for U.S. airlines who have warned they ...

WASHINGTON: A group of Senate Republicans on Wednesday backed extending a US$25 billion payroll assistance program for U.S. airlines after warnings that carriers may be forced to cut tens of thousands of jobs without government action, according to a letter seen by Reuters.

Senators Marco Rubio, Roger Wicker, James Inhofe, James Risch, John Cornyn, Todd Young, Susan Collins, Martha McSally and others who signed the letter said they backed a new six-month extension of the US$25 billion payroll support program"to avoid furloughs and further support those workers." Airline officials and unions have been urging U.S. lawmakers to extend new assistance in the face of the coronavirus epidemic's devastating impact on airline travel."With air travel anticipated to remain low in the near future, Congress should also consider provisions to support and provide flexibility for businesses across the aviation industry similarly impacted, such as airport concessionaires and aviation manufacturing," the letter said.

Congress awarded US$25 billion in payroll assistance to U.S. passenger airlines in March, along with US$4 billion for cargo carriers and US$3 billion for airport contractors. Most of the bailout funds do not have to be paid back.

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