Critics Attack Airline Buybacks as Executives Seek Coronavirus Bailout: Here's What They're Missing

The airline industry has been hard hit by the COVID-19 pandemic, which globally is expected to cost the carriers more than $100 billion in lost revenue. The transportation grid has come to a near halt: Flights are cancelled, vacations are on hold, and businesses are banning travel.

In response, airlines are seeking government assistance, with U.S. executives in Washington seeking about $50 billion in grants and loan guarantees designed to help prevent layoffs and stabilize balance sheets until demand recovers.

However, that request has been met with pushback, both from labor leaders who advocate direct assistance for workers instead of corporate funds and by critics who note that airlines have for years been allocating funds to stock buybacks and dividends instead of building up their savings.

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Source Fool.com