The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion provided to the airline sector hit hard by the coronavirus pandemic.
FILE PHOTO: American Airlines passenger plane parked due to flight reductions made to slow the spread of coronavirus disease , at Tulsa International Airport in Tulsa, Oklahoma, U.S. March 23, 2020. The planes on the right are 737 MAX, parked for reasons other than the coronavirus. REUTERS/Nick Oxford/File PhotoCongress approved $25 billion in grants for payroll assistance for passenger airlines.
Airlines must not cut pay or jobs through Sept. 30 as a condition of the grants and are barred from buying back stock or paying dividends and face restrictions on executive compensation. SkyWest Inc Chief Executive Chip Childs told employees on Friday the airline expects to receive $438 million from Treasury in payroll assistance.
“There is a very real possibility that we could be a small airlines by the end of the year,” he wrote in a email seen by Reuters. The four largest U.S. carriers are receiving $19.2 billion in total out of the $25 billion - American Airlines Group Inc (
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