[US] Senate Republicans back $25 billion payroll aid extension for airlines

12 AUG 2020
On August 5 a group of Senate Republicans gave their backing to extend a $25 billion payroll assistance program for US airlines following warnings that, without government action, carriers may be forced to cut tens of thousands of jobs. According to reporting by Reuters, based on a letter the news agency accessed. Between American Airlines and United Airlines, over 60,000 frontline workers have been warned that their jobs are at risk.

The news, broken by Reuters prompted a sharp increase in airline stocks. Shares of American Airlines (AAL.O) closed up 9.5 per cent, shares of United Airlines (UAL.O) rose 4.6 per cent and Southwest Airlines (LUV.N) was up 4.2 per cent by closing. The letter was the first public disclosure of significant Senate support for additional emergency airline funding. Reuters reports further details of the letter and the potential support available.

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