Editorial Comment

US airlines receive more government support

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US airlines receive more government support

US airlines have reacted with relief to the passage of a new package of government aid for the airline sector. Both the House and the Senate have now passed the new pandemic aid programme that allows for $900 million in aid for troubled industries - some $15 billion in payroll support will be made available for US air carriers. The additional funding requires airlines to call back more than 32,000 workers they have furloughed and keep employees on payroll through the end of March.

American Airlines CEO Doug Parker and President Robert Isom thanked Congress and the administration for their support of the bipartisan coronavirus (COVID-19) relief package that extends the Payroll Support Program (PSP): “This PSP extension will enable us to bring furloughed team members back to work and resume air service to cities and towns that rely on us — all at a critical moment. We appreciate the confidence Congress and the administration are placing in us by extending this additional support, and we proudly accept the responsibility that comes with it. We are prepared to work as hard as ever as we continue to care for our customers, provide vital air service to communities across the country and keep our country moving toward an eventual recovery from this pandemic.”

United CEO Scott Kirby and president, Brett Hart, also applauded the action stating that it means the airline can now “offer temporary employment to thousands of our team members who were impacted on September 30” adding that the involuntary furloughs the airline made over the summer were always a “last resort”.

United stresses the expectation that it doesn’t expect customer demand to change much between now and the end of the first quarter of 2021. “United has been realistic about our outlook throughout the crisis, and we've tried to give you an honest assessment every step of the way. The truth is, we just don't see anything in the data that shows a huge difference in bookings over the next few months. That is why we expect the recall will be temporary.”

Although those comments were tempered with optimism over the recent vaccine developments despite the roll out to the majority of the population still being months away.