Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. House Speaker Pelosi discusses aid with airline CEOs: sources

Published 09/18/2020, 01:25 PM
Updated 09/18/2020, 08:05 PM
© Reuters. U.S. House Speaker Nancy Pelosi (D-CA) speaks during a news conference on Capitol Hill

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) - U.S. House of Representatives Speaker Nancy Pelosi spoke on Friday afternoon with the chief executives of the country's top airlines, who are urging Congress to approve another $25 billion in assistance to keep tens of thousands of U.S. workers on the payroll past Sept. 30, sources said.

The call with Pelosi, House Transportation Committee Chairman Peter DeFazio and the CEOs followed one with labor, where the speaker voiced support for additional aid, according to Association of Flight Attendants-CWA International President Sara Nelson.

"It's clear that this is a priority for the speaker," said Nelson, who was on the call. "Nobody is talking about why we need this. There's total agreement. The question is what's the vehicle."

Airlines and unions are pleading for an extra six months of aid under a bipartisan proposal for another $1.5 trillion in coronavirus relief.

The end of this month marks the expiration of the $25 billion in federal payroll assistance that airlines received when the coronavirus first began spreading around the world.

Without an extension, United Airlines (O:UAL) and American Airlines (O:AAL) alone are set to furlough some 40,000 workers on Oct 1. American has also said it plans to end service to 15 small communities, a move that could be followed by other airlines.

President Donald Trump is also open to a stand-alone measure for airlines, though congressional aides say that is unlikely to win support given aid requests from so many other struggling industries.

In a letter to Congress on Friday, United CEO Scott Kirby (NYSE:KEX) recognized the severe impact the virus is having on the entire economy and argued that assistance now can help lessen the long-term impact and speed a recovery.

"The aviation industry is a critical driver of the larger economy," he said in the letter, which was also signed by five union leaders.

Air travel has plummeted over the last six months as the coronavirus pandemic has claimed nearly 196,000 American lives and prompted many to avoid airports and planes, seriously depressing airline revenues.

While lobbying Washington, airlines are also negotiating with employees to minimize thousands of job cuts that would happen without more federal funds.

A Democratic aid said earlier that CEOs from United, American, Delta Air Lines (N:DAL), Southwest Airlines (N:LUV), JetBlue Airways (O:JBLU), Hawaiian Airlines (O:HA), Alaska Airlines (N:ALK) and others were expected on the call with Pelosi.

© Reuters. U.S. House Speaker Nancy Pelosi (D-CA) speaks during a news conference on Capitol Hill

Congress also set aside another $25 billion in government loans for airlines, but many have opted not to tap that funding source.

Latest comments

(What do you do ?? The mall is still closed !!)
They should sell more equity ir borrow more. Congress need to aporove more unemplyment top offs so all unemployed including the ones from the airlines that are coming. No more special treatment for airline industry
F the airlines! Average americans live on capitalism. Why should big businesses get socialism handouts from average American’s taxes? Everyone is replaceable!
No, they wouldn't be replaced but laid off. Which would trigger more layoffs across the economy.
Meh! Get in line ****** In Trump’s economy, everyone is replaceable, & unemployed. Are you tired of winning? Shareholders were happy. They got a tax break, and sent it to their stock shareholders. Employees got screwed. Trump is responsible for the largest transfer of wealth program in American history.
another 25billion cash to bury?
Meanwhile back at the oasis... nothing doing 🙄👎
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.