Airlines in the United States are asking for a $50 billion bailout to help them weather the coronavirus crisis. The proposed bailout would come in the form of federal grants and loans. Airlines are also asking for a return of $4 billion in taxes paid by airlines so far in 2020. The bailout is being requested by a trade organization called Airlines for America (A4A). You may already know that A4A represents major carriers like Delta, United, American and Southwest.
Airlines in the United States are warning that they will likely run out of money if a bailout isn't provided. The outlook so far is that lawmakers will agree to the bailout. However, many leaders in Washington are making it clear that they will only approve a bailout package that favors workers instead of corporate interests. It's likely that only a proposal that protects employee wages during the coronavirus crisis will be passed. The Federal Aviation Administration (FAA) has already done its part to ease some of the burden on airlines by waiving slot-use rules at airports around the country. This move allows airlines to reduce flight capacity without worrying about losing slots at major hubs.
The State Department is instructing Americans to avoid traveling out of the country. This news comes as airlines were already slashing capacity on international flights. In fact, major carriers like American and Delta are slashing international capacity by as much as 75 percent. Cancellations are outpacing new bookings for many markets at the moment.