Airlines Tap New Payroll Support Funds
Last spring, the federal government provided $25 billion of payroll support funding to U.S. passenger airlines, preventing job cuts in the hard-hit industry. However, this aid only provided a temporary reprieve, which ended on Sept. 30. Airlines subsequently let go of tens of thousands of workers, after Congress failed to agree on a payroll support extension despite bipartisan support for the concept.
Congress finally approved a second round of payroll support last month. In recent days, three of the largest U.S. airlines reported that they have already received their first disbursements under the new program. Let's take a look at what this means for American Airlines, Delta Air Lines, and Southwest Airlines.
Congress allocated $15 billion for the second round of airline payroll support -- significantly less than the amount available under the original program last spring. This is filtering through to the amounts offered to each company.
Source Fool.com
